USDC (USD Coin) is one of the most popular stablecoin in the cryptocurrency market. Stablecoin is a cryptocurrency whose main task is to keep its value as stable as possible in all situations. In the case of the USDC, this means that the value of one USDC should be as close as possible to one dollar.
The value of the USDC is pegged 1:1 in US dollars, so the dollar exchange rate also determines its price. The dollar reserves underlying the USDC are deposited in an account designated by the USDC issuer. The USDC has been audited by Grant Thornton, one of the world's largest audit firms, and the USDC's underlying dollar reserves are also reviewed at regular intervals to ensure compliance.
USDC (USD Coin) was launched in the Ethereum blockchain in the fall of 2018 in collaboration with Coinbase and Circle, a long-established US cryptocurrency company. Coinbase and Circle are companies with an excellent reputation that generally enjoy a very high level of trust among those who follow the cryptocurrency market. The USDC has proven to provide protection against strong exchange rate fluctuations in the cryptocurrency market, and its popularity has been steadily growing since its inception.
The growth in the popularity of the USDC has been fueled by the sharp rise in Defi services that began in 2020 and the consequent growth in the interest rate market for cryptocurrencies, and the uncertainties surrounding the dollar reserves of another popular stablecoin, Tether. The strong position and reliability of the USDC are also reflected in the fact that in March 2021, payment service giant Visa announced that it would accept the USDC as a payment method for its online payments.
USDC is a stablecoin whose value is pegged in dollars. Thanks to the stability of the USDC, it offers excellent protection against the high volatility of the cryptocurrency market. The uses and popularity of stablecoins among investors are currently growing rapidly, and the future of stablecoins looks very bright. Although the USDC is, in effect, a digital dollar on the blockchain of Ethereum that eliminates the price risk of cryptocurrencies, there are still several factors that distinguish it from traditional dollar investment.
USDC allows investors to earn better interest rates than traditional cryptocurrencies like Bitcoin and Ethereum. The most popular way to earn interest income for the USDC is to use various Defi services. Defi (Decentralized Finance) refers to services familiar from traditional banks imported over a distributed blockchain. Although the cryptocurrency market volatility is significantly higher than traditional investments, investors can use the USDC to earn interest income for themselves without fear of strong exchange rate fluctuations.
Many cryptocurrency exchanges do not currently offer exchange pairs for euros or dollars. The USDC allows investors to trade cryptocurrencies without fear of the effects of exchange rate fluctuations on investment capital. USDC is also very easy to transfer between cryptocurrency marketplaces and trade to other cryptocurrencies.
The USDC and other stablecoins fill the gap between traditional currencies and cryptocurrencies. The USDC also acts as an excellent medium of exchange. People do not have to worry about the effects of exchange rate fluctuations in the cryptocurrency market on USDC purchasing power. Due to its low volatility and reliability, the USDC has grown in popularity among cryptocurrency investors in recent years.Sign up now to invest in USDC