- These Top Crypto OGs Love to Hang Out at Parties - September 16, 2022
- Crypto Twitter is Raging Bulls over Name-calling - September 15, 2022
- Stop Putting “Feminism” Labels on the Demand for Internet Privacy in Web3 verse - September 14, 2022
USDC might soon reign the stablecoin market with its increased number of investments
USDC is one of the fastest-growing stablecoins in the crypto industry and is a tough competitor against Tether. As the crypto market welcomed an influx of new investor class investors comprising young college students and teens, there emerged a growing significance for stablecoins, since there is the best possible way to avoid volatility in the market. USDC, being the top stablecoins and cryptocurrency in the market became a popular choice among new investors trying to evade the volatility. This dollar-backed crypto coin enables its users to convert their USDC into dollars on popular and trust-worthy exchanges like Coinbase and for no cost. Quite similarly, users with dollars can exchange it with USDC on Coinbase. But apart from these benefits, USDC is notable for several other reasons. The primary and central reason is that the market trusts Circle (the consortium that oversees the issuance of USDC) and Coinbase to ensure that there is no negligence in issuing the coins.
BlackRock, Fidelity, and Others invest in USDC
Recently, on April 12, 2022, the cryptocurrency firm, Circle announced a US$400 million funding round led by asset management firm BlackRock, with more investments from Fidelity Management and Research, Marshall Wace LLP, and Fin Capital. The deal involved BlackRock becoming the primary asset manager for USDC cash reserves. In addition to this, BlackRock has also entered into a strategic partnership with the Boston-based crypto firm Circle. Experts believe that BlackRock is extending its wings into the crypto domain and in the future will acquire more than just cryptocurrencies and stablecoins.
This partnership is quite noteworthy for the future of digital assets and ease in digital asset management. The crypto asset manager has also made headlines in 2021 as it added Bitcoin Futures to derivatives products that two of its funds can invest in.
Growth in USD Coins’ market cap
Back in December 2021, USDC celebrated crossing the US$40 billion resistance and again hit the US$50 million resistance in January 2022. As USDC continues to grow, BlackRock’s investment and partnership have even enhanced its market cap and prominence as a stablecoin. There are several factors influencing USDC’s growth, apart from increased investments and investors’ preferences.
Firstly, it is a stablecoin and is generally considered the storehouse of safety, especially in countries where local currency is suffering a loss of valuation. With high inflation rates in the United States, digital dollar currencies like USDC are gaining momentum. Also, the potential of multiple rate hikes also gives USDC the opportunity to capture the upside of a stronger valued dollar. Moreover, 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 nutshell, the recent USDC investments can make it difficult for Tether to retain its market dominance. The battle of stablecoins is on, and we are only speculating that the best one dominates the market.
0 commentsWrite a comment