Bitcoin (BTC) and other top currencies have had a rough few days. But as the big coins sink, several stablecoins, including the USD Coin (USDC), have boomed.
Wednesday and Thursday were especially rough for the crypto market. Unfortunately, we’re now seeing Bitcoin (BTC) at its lowest in over a year. It plummeted about 11% Wednesday from around $6,300 to $5,600. Its market cap fell from $110 billion to $98 billion. This marks the first time that it’s gone below $100 billion since before the massive surge at the end of 2017. And the global market cap dropped nearly $30 billion in total.
Meanwhile, a winner the last few days is USD Coin (USDC)
As Bitcoin (BTC) and others fell on Wednesday, the USDC rose 15% and has remained at its new height since. Its USD value remained stable at around $1.01, which is to be expected.
On the same day the USDC saw a 400% increase in trading volume as well. This is the highest trading volume this relatively new coin has experienced to date.
A major announcement also occurred for USDC Wednesday
Currently, the stablecoin is supported by Circle and Coinbase, but Binance just announced that it will be adding it as well. This news comes at a significant time for USDC and these exchanges, since many are turning to it during this time of crisis.
Meanwhile, the original stablecoin, Tether (USDT), is not experiencing quite the same boom
On Wednesday, the coin’s market cap remained stable, and it shows only a mild increase since. Although it is now more stable, its dollar value briefly dipped by several cents.
This may have deterred some from turning to Thether (USDT). While the USD allegedly backs it 1:1, Tether has no public records to verify this. And its value has dipped before. Finally, on exchanges like Bitfinex, that rely on the USDT and Bitcoin (BTC) pairing, Bitcoin (BTC) is trading at a higher premium.
A few other newer stablecoins have also faired well during this recent dip
Besides USDC, TrueUSD (TUSD) and Dai (DAI) saw comparably dramatic hikes. TrueUSD (TUSD) is fully transparent and publicly audited. It is available on Binance and a few other exchanges. Dai (DAI) offers an alternative solution, whereby Ether (ETH) backs the coin on a publicly viewable ledger.
While Dai (DAI) is not available on the same caliber of big exchanges as the others, it is spreading. On Friday, they announced that a major South American exchange, Ripio, will be adding the coin.
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The post USDC and Other Stablecoins Climb as Bitcoin (BTC) Sinks by Ifeanyi Nwaokorie appeared first on BittPress.