Some $30 million worth of USDC tokens have been issued by Coinbase and Circle on ethereum’s blockchain.
The minting of the ERC-20 token occurred at around 10:30 PM (London time) on Wednesday with a transaction fee of just $0.14 paid for the transfer.
That gives the token a market cap of $456 million with Circle/Coinbase claiming in a statement this is now the fastest growing stablecoin. They say:
“USDC is the first stablecoin to reach $1 billion in issuance in under a year and accounts for 15% of all outstanding crypto loans. And USDC continues to pick up steam.
The amount of USDC traded on exchanges grew 350% in the last six months. The value of USDC transferred on chain nearly tripled to $17 billion in the last six months. There have been more than 750,000 transactions involving USDC across more than 62,000 wallets.”
We can see above a correlation of sorts between USDC’s growth of market cap and bitcoin’s price rise, or in this case the dollar’s fall against bitcoin.
Since at least May, the higher USDC’s market cap, the higher bitcoin’s price, with the token itself very stable during that period.
An obvious explanation for this may be that as demand grows for bitcoin, so too does demand grow for USDC tokens.
It’s not easy to see from the chart which is leading, but logically you’d think especially in certain regions like China, demand for USDC would grow first so that they can use it to buy bitcoin.
Tether is far more established in regards to that aspect, with USDC being pretty much tether but issued by the regulated entities of Coinbase and Circle.
You can easily convert USD to the tokenized dollar and vice versa on Coinbase, with one use case for this token being arbitrage, while another may be an easier way to enter the crypto market in restricted regions, in addition to it acting as the dollar equivalent in decentralized or crypto only exchanges.
Tether itself has grown to fourth position in market cap with more than $4 billion. If all USD are added together, they would near about $5 billion, making tokenized dollars one use case of public blockchains.