Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
According to Messari, USDC is all set to become the next governing stablecoin on Ethereum due to its rising popularity on DeFi.
USDC has emerged as one of the fastest rising stablecoin on Ethereum and has occupied a position as the next ruling stablecoin. A registered 50% fall in the prices of Tether’s share as stablecoin gave USDC a chance to grow much bolder in the face of financial market value and position.
Research and analysis teams on crypto variants and trading platforms have anticipated that the growing popularity of the USD coin was instrumental in making Tether values crash in the financial market domain.
USDC’s Growing Role in DeFi Termed as a Major Factor for Its Rising Popularity
Seeking active involvement of USDC with DeFi lending protocols such as MakerDAO, Compound and Aave are the significant benefactors in consuming USDC and making it quite popular at the same time.
According to the official reports of Tether Transparency, there has been an increase in USDT by 200% which amounts to approximately US$ 62.7 billion worth of USDT in circulation. A total of US$ 30.9 billion resting with Tether that has been falling incessantly in the market.
USDC that is launched in Ethereum has experienced a surge in prices of 1820% in 2021 and has facilitated a record supply of stablecoin at 25 billion on crypto trading and exchange app called Circle.
USDC Likely to Have a Stable Rise in Price
According to various market research data analysts, the trend that induces the rise in USDC prices is likely to rise further as the USDC has sought an active association with Compound Treasury. This association will further facilitate 4% interest on USDC to institutions. This will also encourage the DeFi API initiated by Circle to develop as a new platform to ease DeFi’s business operations.
Earlier this week, another prominent US-based crypto exchange Coinbase issued statements that they will actively provide 4% interest on USDC holdings adding a more progressive stance to the existing USDC popularity spectrum.