Network data has revealed that the current amount of stablecoin USDC in circulation has surpassed 1 billion in July.
According to the data disclosed, the dollar-pegged stablecoin, which was launched in October 2018, by Circle and Coinbase has set the record as the second-ever stablecoin to see its circulating supply surpass the 1 billion mark.
— Joao Reginatto (@reginatto) July 1, 2020
Also, the director of product manager at Circle, Joao Reginatto, also took to his official Twitter handle to announce the $1 billion USDC in circulation mark.
Tether’s USDT holds the record as the first stablecoin to cross the 1 billion mark and currently still maintains commanding lead within the stablecoin space with its total market cap surpassing $10 billion as of June 30, only falling behind Bitcoin and Ethereum.
At press time, the total market share of USDC on Ethereum stands at around 13 percent, while Tether still leads the pack with 78 percent.
Notably, USDC in circulation witness supply growth in June when its total jumped 37 percent from 730,920,001 to 1,002,228,740. The current number represents a 93 percent increase from the beginning of 2020. This invariably makes USDC the 18th digital currency in the decentralized space to have a 10-digit circulating supply.
USDC in circulation recent surge and demand
Stablecoin, like USDT and USDC, has recently recorded an increase in demand in the crypto space.
The most recent Black Thursday crash of the crypto space, which saw the value of Bitcoin and several altcoins drop, has also helped facilitate the new demand in stablecoin.
The volatile nature of cryptocurrencies has invariably drawn many investors to seek out stablecoins in a bid to prevent much loss and reduce risk as well.
Notably, other stablecoins, including USDT, USDC, Paxos Standard (PAX) and TrueUSD (TUSD), Gemini Dollar (GUSD), and many more, also recorded an increase in demand. However, the majority of the market is captured by USDT, where it enjoyed a market dominance of over 90 percent, followed by USDC.
Coinbase cuts rewards on USDC stablecoin
Additionally, recently crypto exchange Coinbase has slashed rewards on USDC stablecoin holdings by about 90 percent. The initiative, which was launched in October 2019, rewards US users with USDC. Rewards are accrued daily and distributed monthly.
Coinbase users usually earn 1.25 percent annual percentage yield (APY) on their USDC funds. That reward now has been cut to just 0.15 percent APY, effective today. Coinbase did not specify the rationale behind the move, but the reduction is in line with other major banks and fintech firms.
Stablecoins are cryptocurrencies that are attached to an asset with a stable value, like fiat money (USD more specifically) or gold. A stablecoin usually has a fixed valuation concerning its asset. Stablecoins should remain stable despite the volatility of other cryptocurrencies.