The stablecoin-child of Coinbase and Circle, USDC, has reached $5.5 worth of transactions on-chain, and in response has published a ‘state of USDC’
USDC seems to have been crafted in response to Tether, which has suffered in large part due to a lack of transparency, and a dogged rumor that Tether is secretly unable to back up its stablecoin with fiat currency. USDC seems to be motivated to provide consistent information to its users and the general public, including the information in this most recent report.
Some highlights include the support of USDC by many major exchanges, including Binance, Bitfinex, and of course Coinbase, as well as a number of OTC trading desks including Coinbase’s, which the report notes has been a major driver behind the increased circulation of USDC.
The report also boasts of USDC’s growing market cap, which currently hovers around $300 Million.
While USDC has a large and growing set of numbers behind the coin, it is only active in about 8,000 individual wallets. This, especially when considering that a number of these wallets are those used internally by exchanges, means that despite a growing circulation of USDC, the token has not been fully disseminated to a wide breadth of users.
Furthermore, crypto Twitter has pointed out recently that USDC, along with most other stablecoins like Tether and Gemini, include a ‘backdoor’ which can freeze assets. This stipulation is included in order to be used to abate illegal activity, and has never been activated by any stablecoin, but this still has negatively affected the public perception of stablecoins including USDC.
— Eric Conner (@econoar) October 23, 2018
Either way, many investors have pointed to stablecoins as an important stepping stone in massive crypto adoption by providing a stable crypto currency to both onboard fiat currency into the digital market, as well as a useful payment platform as opposed to a rapidly vacillating currency. USDC in particular has things to be happy about, and is likely to be a significant actor in the stablecoin market for the forseeable future.