USD Coin Price

USDC stablecoin offers a convenient way to enable digital payments, leveraging the advantages of digital currencies without the fears of price volatility. As a result, several businesses have started accepting USD Coin as a payment method, making it a faster and more convenient way to enable digital transactions.

The USDC value and market cap have also been driven higher because of the increasing interest in decentralized finance markets. Several DeFi and even CeFi apps offer high yields to users who lend USDC coins to improve such platforms' liquidity. Investing in USDC offers a promising passive income generation stream for crypto investors.

Many traders also find it beneficial to use USDC as the base currency when trading cryptocurrencies on CEXs and DEXs. Because of the USDC price stability mechanism and high liquidity and trading volume, executing buy and sell USD Coin trades are faster and more efficient.

The USD Coin is also an extremely convenient way to transfer digital payments among users worldwide. Leveraging the blockchain's distributed technology, remittances via USDC can happen in mere minutes. You can also redeem USDC via exchanges relatively quickly, thanks to its high liquidity and trading volume.

USDC is the second most popular stablecoin in the crypto market based on its market cap and trading volume. As a result, it is considered one of the most reliable dollar stablecoins in the market.

USD Coin is entirely backed by an equivalent reserve of US dollars in the form of cash and short-term US Treasury bonds. This means that Circle can always ensure that the total supply of the USDC remains pegged to the USD.

In addition, Circle has enlisted Grant Thornton's services to publish monthly attestation reports about the reserve balances that back the total supply of the USD Coin. Circle - the issuer of USDC, enjoys being a licensed money transmitter in over 46 US states and Puerto Rico.

This, by extension, makes USDC a regulated store of value. In the US, such stored value products fall under the regulatory purview of states’ money transmission laws.

For crypto investors, USDC is one of the most reliable digital assets to invest in as it can offer high yields on lending, especially in the DeFi space powered by smart contracts. As a stablecoin that is very much in demand, most CeFi and DeFi platforms provide high returns if you lend liquidity in USDC.

This offers a convenient way to put your USD Coin holdings to work and generate a passive revenue stream. It’s incredibly lucrative for HODLers who invest in crypto assets long-term instead of trading them on exchanges frequently, which could offer higher rewards but at higher risk.

You can lend USDC on KuCoin to earn attractive interest rates over a fixed period. You can choose to lock your funds for seven days, 14 days, or 28 days and generate interest on your USDC tokens.

USDT and USDC are the leading stablecoins used across the crypto market, including exchanges, wallets, and dApps. While both serve the same purpose by giving users a digital currency pegged to the US dollar that safeguards against the volatility of several other digital assets, there are critical differences between them:

USDT Came First

Launched in 2014, Tether (USDT) enjoys the advantage of being the first such offering in the stablecoin market. As a result, most cryptocurrency pairs are listed for trading against the USDT instead of the USDC. More crypto pairs are trading against the USDT, giving it higher liquidity, trading volume, and market cap. than the USDC.

USDC Is More Transparent, Regulated

USDC is backed by equivalent dollar reserves, making it a more reliable dollar stablecoin than USDT. In addition, the issuer of USD Coin - Circle publishes a monthly report revealing the US dollar reserves that back the USDC and maintain its price stability.

On the other hand, Tether has lower transparency levels, making it more vulnerable to regulatory scrutiny. USDT has been at the receiving end of multiple investigations as its backer is not as transparent about its dollar reserves backing its peg to the US dollar.

USDC Is Safer

Several experts have called USDC a safer stablecoin since the Centre consortium remains dedicated to its efforts around compliance and regulations by the government. In addition, the more transparent business practices also make USD Coin more reliable than Tether.

This has caused USDT to experience more price change than USDC in times of highly volatile market conditions. As USD Coin's adoption rises, driving its market cap to increase, it has been eating into USDT's market share.