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Coinbase Backed USDC Coin Crosses $1billion, Market Cap

USDC Coin, a popular U.S. dollar-backed stablecoin backed by influential crypto companies has made a highpoint by crossing $1B in market capitalization on July 2nd.

The stable coin launched in October 2018 by Centre Consortium; Circle, and Coinbase.

In just 21 months showing a remarkable floating volume of data, shown by crypto data analytics websites CoinGecko and Coin360.

The 19th rank holder and a fastest growing stablecoin after Tether (crossed a $10 billion market cap on July 1), has successfully achieved the product-market fit and proved its significance in the decentralized finance (Defi) ecosystem where hundreds of wallets and cryptocurrency exchanges are using it daily.

USDC’s Coin Notable Growth Factors

On July 2, Centre Consortium via blog highlighted few points accelerating USDC coin and how the stablecoin started experiencing the growth since 2019 when the prominence of DeFi products banged the crypto ecosystem.

The blog highlighted three major reasons which are primarily involved in the growth of USDC coin.

This is a notable fact that year 2020 has given fire in the threshold of cryptocurrencies and stablecoins globally. The major role played by pandemic COVID-19 and its aftermath financial crisis. At the macro level, the demand for the digital dollar had augmented due to uncertain and volatile markets of fiat and created a sort of FOMO in the minds of investors and traders to have a more secure, fast, inexpensive, and global digital dollar.

While highlighting the second reason, the blog pointed on global businesses that are at the lookout of payments which are based on new and secure interoperable systems that can be managed digitally. As proved by various projects case studies “spanning payments, trading, savings, lending, commerce and more,” the new interoperable infrastructures can facilitate low-cost transfers world-wide smoothly and instantly.

The third credit goes to the new developments in the crypto industry and the influence of the Defi ecosystem.

The post noted:

“The governance of the Compound protocol have driven significant demand for USDC, highlighting DeFi as a space with high growth potential.”

The Centre Consortium- an administration created by Coinbase and Circle to power DeFi (decentralized finance) ecosystem, working flawlessly towards revolutionizing the digital currency space with a mission to create an open standard for money while building fiat-backed stable coins on the internet with global governance framework.

On June 24, Centre also announced the innovative framework of multi-chain support on USD Coin (USDC) to power other blockchains. To leverage the support of new standards and interoperable network, “Algorand will be the first blockchain with a stablecoin implementation based on that framework that is “Powered by USDC.”