Here’s what USDC is doing right to maintain certainty amidst Terra’s meltdown
It was only a week ago when the stablecoin economy got awfully close to surpassing the $200 billion mark. But Terra’s recent collapse changed all that. At press time, the stablecoin market capitalization witnessed a significant fall to the $163 billion figure.
A majority chunk of stablecoins within the market lost their $1 parity. For instance, Tether (USDT), the largest stablecoin in existence lost its $1 to the U.S. dollar value. USDT suffered a 7% correction in a week and traded at $0.99 per unit at the time of writing.
However, the second largest stablecoin seems to bear the storm and continue to maintain its parity. USD Coin price today is $1.00 with a 24-hour trading volume of $7,469,042,412. It has a circulating supply of 51 billion USDC coins and a total supply of 50.9 Billion as per Coingecko.
Social volume is a great metric for investors because of the impact of social media on the cryptocurrency industry. Cryptocurrencies and/or Stablecoins have always shared a strong relationship with online forums and social media platforms even in its earliest days. For instance, consider the volume chart below, USDC, here witnessed immense traction.
Moving on, Development Activity is an often-underrated indicator of project success. USDC’s development activity demonstrates the month-to-month commitment to creating a working product, and continuously polishing and upgrading its features.
There are thousands of projects and exchanges supporting USDC in over 190 countries, facilitating the use and exchange of USDC for market participants. Indeed, one of the reasons why the metrics painted a bullish picture.
During the last seven days, Circle minted 8.4 billion USDC and redeemed 6.7 billion USDC. USDC reserve consisted of $11.6 billion in cash (22.9%), and $39.0 billion in U.S. Treasuries (77.1%). As of 13 May, there are 50.6 billion USDC in circulation.
Therefore, injecting some certainty amidst the growing dark ominous cloud of fear. The team asserted:
“Circle has intended for USD Coin (USDC) to be the most transparent and trusted dollar digital currency. We remain committed to transparency and trust. Will continue to enhance reporting and disclosure with simple, clear and frequent updates.”
But, you’re not alone
As the Terra-fying depgging fiasco continues to rage, USD Coin too has increasing competitors ready to take the numero uno spot. In this case, Binance USD. It might look like USDC is the clear winner when compared to BUSD, but Binance’s stablecoin is a heavyweight player could come in at a close second.
In fact, BUSD recorded more 24 hour volume figures as compared to USDC.