Introduced in late 2018, USDC occupied a very minimal market share amongst stablecoins. Until mid-2020, the coins in circulation; which signal demand, have been growing at a steady rate and reached $730 million in July 2020.
With the rise of DeFi (decentralised finance) that number began growing parabolically boosting the coins in circulation by +310% in less than five months.
Its market capitalisation sits at over $3 Billion today.
According to Centre Consortium, there are multiple factors that contributed to USDC’s parabolic growth in 2020:
- Dollarisation which has boosted demand in markets such as Latin America, Asia and Africa
- Businesses from multiple sectors leveraging the efficiency of stablecoins in payments, commerce and treasury operations
- The importance of stablecoins in the cryptocurrency market for trading and hedging
- The explosion of DeFi lending and credit markets
David Puth, the CEO of Centre stated:
“The accelerated growth of USDC over the course of this year is the result of our active work to establish an open standard for fiat digital currency on the internet.“
USDC has recently announced a future integration with the giant payments processor Visa.
Visa confirmed that they are planning to open up their network to the Ethereum-based USDC and issue Visa cards for select users to send and receive the stablecoin. Their expansion plan is to reach businesses where send and accept international payments in USDC and have it settle in their currency of choice.