USDC doubles its market share on centralized crypto trading platforms to over 10%
usd coin (USDC), the second largest stablecoin by market cap, has seen its market share on centralized crypto trading platforms increase significantly in recent months.
Data from Paris-based crypto intelligence platform Kaiko showed that USDC’s market share doubled from around 5% in September 2023 to over 10%, mainly due to increased volumes recorded on Bybit.
USDC Stablecoin Market Share. (Source: Kaiko)
Why is USDC’s market share increasing?
Bybit has emerged as the largest market for USDC, likely due to its introduction of a zero-fee trading incentive for USDC trading pairs in February last year.
Following the legal issues that arose with Binance USD (BUSD), binance‘s relisting of its USDC stablecoin also had the potential to help increase USDC’s market share during the period.
Coinbase, the largest US crypto trading platform, has also gradually increased USDC interest rates, starting from 2% and gradually increasing it to 6% over the past year. This has greatly encouraged users of the platform to hold stablecoins.
Additionally, stablecoin issuer Circle has significant partnerships with major financial institutions such as Japanese financial giant SBI Holdings and has licensing in major regions such as Singapore, further helping to increase the circulation and presence of USDC.
Supply of USDC
Despite these improving figures, the current circulating supply of USDC currently remains below its all-time high of $45 billion.
Circle attributed this decline to several factors, including:issuance interest rates, regulatory pressures, bankruptcies and outright fraud.
Additionally, USDC faced serious headwinds last year following the collapse of one of its banking partners, Silicon Valley Bank. This caused USDC to briefly lose its peg and cause a massive outflow from the digital asset.
Meanwhile, Circle recently announced its intention to go public again through an initial public offering (IPO) filed with the U.S. Securities and Exchange Commission.
#USDC #doubles #market #share #centralized #crypto #trading #platforms
usd coin (USDC), the second largest stablecoin by market cap, has seen its market share on centralized crypto trading platforms increase significantly in recent months.
Data from Paris-based crypto intelligence platform Kaiko showed that USDC’s market share doubled from around 5% in September 2023 to over 10%, mainly due to increased volumes recorded on Bybit.
USDC Stablecoin Market Share. (Source: Kaiko)
Why is USDC’s market share increasing?
Bybit has emerged as the largest market for USDC, likely due to its introduction of a zero-fee trading incentive for USDC trading pairs in February last year.
Following the legal issues that arose with Binance USD (BUSD), binance‘s relisting of its USDC stablecoin also had the potential to help increase USDC’s market share during the period.
Coinbase, the largest US crypto trading platform, has also gradually increased USDC interest rates, starting from 2% and gradually increasing it to 6% over the past year. This has greatly encouraged users of the platform to hold stablecoins.
Additionally, stablecoin issuer Circle has significant partnerships with major financial institutions such as Japanese financial giant SBI Holdings and has licensing in major regions such as Singapore, further helping to increase the circulation and presence of USDC.
Supply of USDC
Despite these improving figures, the current circulating supply of USDC currently remains below its all-time high of $45 billion.
Circle attributed this decline to several factors, including:issuance interest rates, regulatory pressures, bankruptcies and outright fraud.
Additionally, USDC faced serious headwinds last year following the collapse of one of its banking partners, Silicon Valley Bank. This caused USDC to briefly lose its peg and cause a massive outflow from the digital asset.
Meanwhile, Circle recently announced its intention to go public again through an initial public offering (IPO) filed with the U.S. Securities and Exchange Commission.
#USDC #doubles #market #share #centralized #crypto #trading #platforms