What is USDC?
USDC is the ticker symbol for USD Coin, which appeared in September 2018. It was created by CENTRE Consortium. Thanks to the involvement of two large companies, the new token has attracted the interest of investors and crypto users. Moreover, both companies have passed regulatory reviews, which gives the cryptocurrency weight and stability.
USDC runs on the Ethereum blockchain, so there are ERC-20 tokens in circulation, which are exchanged by most exchanges, including WhiteBIT. The exact number of tokens in circulation is unknown, but USDC's maximum number is around 32.8 billion. USDC is in ninth place in terms of popularity and accounts for 1.32% of the cryptocurrency market.
How stable is the USDC price?
As with most stabelcoins, the USDC exchange rate is tightly pegged to the US dollar. Under ideal conditions, one USD Coin would fetch $1. In reality, the price has fluctuated slightly around that mark since the blockchain's launch. In January 2020, for example, the price peaked at $1.04, which is still a record high for USDC. The token reached its low point in March of that year, when it fell to $0.97.
Unlike other cryptocurrencies, USDC's Stablecoin is backed by fiat currency reserves. According to CENTRE Consortium, each token is backed by short-term US Treasury bonds and cash dollars held in a network of financial institutions under US jurisdiction.
What's the outlook for USDC Coin?
Due to the fact that USDC keeps its price constant, the stablcoin is positioned as an alternative to fiat currencies that is not restricted by national borders. The creators of the token intend to make USDC available on as many platforms and wallets as possible. They envision the crypto could revolutionise the decentralised finance (DeFi) market, the gaming industry and decentralised applications (dApps).
In addition to its active use as a digital currency, USDC also attracts cautious investors who do not want to risk their assets. Due to its price stability, novice and experienced traders can secure their crypto-savings during long trading interruptions.