USDC Market Cap Grows to More than $50 Billion
It was just a little over a month ago, on December 5, 2021,?that?USD Coin (USDC)?celebrated the $40 billion milestone, and already the dollar digital currency has reached a $50 billion market cap as of January 31, 2022. As USDC continues its remarkable trajectory, growing 10x over the course of 2021, people want to know what’s driving the growth and what’s next.?
USDC Growth by the Numbers
According to Circle’s internal data aggregations, USDC’s growth since 2021 extends beyond just hitting $50 billion in market cap.
What is Driving USDC’s Growth??
In an always-on global economy, markets and individual’s financial needs do not take bank holidays. The advent of trusted digital currencies like USDC are enabling a wide range of use cases from a "flight to safety" during inflation, borderless transactions and payments to a medium of exchange in DeFi.
1. A Safe Haven for Your Money
We have seen increased adoption of assets like USDC as a "flight to safety", especially in countries where local currency is suffering from a valuation loss. With inflation rates in the United States at its highest levels in nearly 40 years, and potential?rate hikes1?from the Federal Reserve, digital dollar currencies are also gaining momentum as viable alternatives to the dollar bill.
The potential of multiple rate hikes also gives USDC, a dollar-pegged stablecoin, the opportunity to capture the upside of a stronger valued dollar. Investors from foreign countries will likely want to capitalize and benefit from the strengthened dollar against weaker currencies by converting their fiat currencies to USDC.
2. Borderless Transactions
With USDC, consumers can choose to hold a dollar-denominated stablecoin and carry out cross-border transactions with only a mobile phone or internet connection. In a world where ‘Digital Transformation’ is continuing to drive innovations, near instantaneous and cost effective transactions are possible with the likes of a digital currency like USDC.
At Circle, relationships with innovative brands like?MoneyGram?and?Bitso?have made global payments and remittances a much easier experience for individuals and families in markets like Latin America, Africa (South Africa and Nigeria) and in Asia (India and the Philippines).
By leveraging Circle’s infrastructure and suite of APIs, additional communities around the world can use exchanges and wallets to connect their currencies and use USDC to experience the borderless and efficient payment transactions.
3. Increased Usage for Payment Use Cases
Over the course of 2021 and the beginning of 2022, USDC is becoming a trusted payment method. Through partner relationships with brands like Visa, MasterCard and Plaid, Circle and USDC are making it easier for millions of additional consumers to access and use USDC, one of the fastest growing digital dollar assets.
Circle and USDC are also?enabling?businesses?across industries?to integrate with key APIs and payments infrastructure in order to efficiently and safely transact USDC. From developing payment rails for a trade finance organization to allowing donation efforts to be made in USDC, more businesses and consumers are now able to easily access the growing digital dollar.
4. Multichain Availability
The availability of USDC on multiple new chains across the crypto ecosystem has added to the growing market cap of USDC. One of the leading digital dollar currencies, USDC is available on 8 chains and counting, with four coming on line in 2021:?Stellar,?Tron,?Hedera, and?Avalanche.
Circle is creating a broader digital commerce use case where customers across any of these blockchains can accept payments at scale, maintain accounts infrastructure, and send and receive USDC.
5. The World of Digital Assets is Not Slowing Down
Throughout January 2022, digital asset markets have experienced massive volatility, dropping more than $1.35 trillion in value according to CoinMarketCap. Still, USDC has continued growing. Digital assets continue to attract new investors and users, both at the individual and institutional level. Each of these users relies on USDC as a medium of exchange to power an array of new, innovative internet commerce.
The world of cryptocurrencies continues to evolve - individuals and businesses are now hunting for high yield interest rates on their custodied digital currencies,?DeFi lending and borrowing grew tenfold in 20212, and we approached nearly?300 million crypto3?users around the globe by the end of 2021.
6. Circle’s Broad Product Suite
USDC is the foundation of every Circle product and every Circle product reinforces USDC’s growth.
The?Circle Account?provides businesses and financial institutions with a platform to make payments and store funds in USDC. The Circle Account enables businesses to make and receive payments nearly instantly and globally to any blockchain-compatible digital wallet, providing an efficient and cost-effective alternative to traditional bank payment rails. The number of Circle Account customers grew 213% from 2020 to the end of 2021.?
$50 Billion and Counting
Launched in 2018, USDC’s growth has been remarkable, and it’s still in the early stages like all innovations in the broader crypto and blockchain industry.
As the global economy continues to gain interest in the world of digital assets, the demand for digital currencies like USDC will likely continue to grow exponentially. Reaching $50 billion is certainly an impressive feat, and with the need for improved and borderless payment solutions combined with new technology, we can expect USDC and the broader crypto-economy to keep rising.
Source- www.circle.com