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Information about USD Coin (USDC)
USD Coin (USDC) is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis. Every unit of this cryptocurrency in circulation is backed up by $1 that is held in reserve, in a mix of cash and short-term U.S. Treasury bonds. The Centre consortium, which is behind this asset, says USDC is issued by regulated financial institutions.
The Centre Consortium has two founding members. One of them is the peer-to-peer payment services company Circle, while the other is the Coinbase cryptocurrency exchange.
In 2020, Circle and Coinbase collectively announced a major upgrade to USDC’s protocol and smart contract. The goal of these enhancements is to make it easier for USD Coin to be used for everyday payments, commerce and peer-to-peer transactions.
The stablecoin market has become exceedingly crowded over recent years — but USD Coin has aimed to stand head and shoulders over competitors by its transparency: Users are assured that they will be able to withdraw 1 USDC and receive $1 in return without any issues.
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Stablecoin activity increased after a sharp decline in the market caused by tariff wars. Investors are quickly moving to stablecoins as a hedge against volatility, leading to a notable increase in daily transactions.
The stablecoin sector defies bearish trends in the crypto market, boasting a total circulation of around 234 billion USD, primarily driven by USDT and USDC growth. Globally, regulatory frameworks are being established to support this growth.
Following dramatic swings in the crypto market, with Bitcoin dropping from 81,000 USD to 74,000 USD, market sentiment remains bleak, reflected in a fear index score of 19/100, emphasizing the challenges facing investors.
Solana’s market capitalization is currently 56.12 billion USD, positioned just 7.16% below USDC’s 60 billion USD. Trading at 109.24 USD, SOL has recently gained 11% in the last 24 hours.
The trading volume for Solana witnessed a major spike, surpassing 8 billion USD in the last day, indicating strong investor confidence and potential trends favoring SOL over USDC.
Experts assert that if SOL’s price exceeds 120 USD, it will likely surpass USDC’s market cap due to its increasing demand, reinforced by Circle minting an additional 250 million USDC on the Solana blockchain.
The USDC Treasury executed a token burn of 51 million USDC on April 8, 2025, aiding in stablecoin supply management. This reflects Circle’s routine practices in liquidity strategy, maintaining USDC’s stable value against USD without significant market disturbances.
The crypto community perceived the token burn as a standard procedure, with no significant statements from Circle leadership. Circle ensures compliance and user trust through reserves held mainly in U.S. Treasuries, promoting stability in the DeFi ecosystem.
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