What is USDC?
USDC is a stablecoin, which means it is designed to maintain a stable value, in this case, pegged 1:1 to the US dollar. Each USDC in circulation is backed by reserves of US dollars or equivalent assets, such as US Treasury bonds, which are held in segregated accounts at regulated financial institutions. This aims to provide stability and transparency in the volatile cryptocurrency market.
Operation:
USDC is issued by Circle, in collaboration with other entities. Its operation is based on a simple process:
* When a user buys USDC with dollars, the dollars are deposited in the reserves and an equivalent amount of USDC is created.
* When a user sells USDC to obtain dollars, the USDC is "burned" (removed from circulation) and the dollars are transferred to the user.
USDC is a token compatible with multiple blockchains, including Ethereum, Solana, Algorand, and many others, making it easier to use in different applications and platforms.
USDC today (June 18, 2025):
* Price: The price of USDC is maintained at approximately $1.00 USD, its target parity with the US dollar.
* Market Capitalization: The market capitalization of USDC is approximately $61.5 billion USD, making it one of the largest and most liquid stablecoins in the market.
* 24-hour Trading Volume: The trading volume in the last 24 hours is around $10-11 billion USD, indicating high activity in its use for transactions and trading.
Main uses of USDC:
* Transactions and payments: Enables almost instant global payments at low cost, without the volatility of other cryptocurrencies.
* Safe haven: Traders use it as a "safe haven" during periods of high volatility in the cryptocurrency market, as its value remains stable.
* DeFi (Decentralized Finance): It is an essential tool in DeFi applications for lending, exchanges, and other decentralized financial activities due to its stability and reliability.
* Cryptocurrency trading: Facilitates entry and exit of other cryptocurrencies without the need to constantly convert to traditional fiat currency.
In summary, USDC remains a fundamental stablecoin in the crypto ecosystem, valued for its stability, transparent backing, and wide adoption across various platforms and use cases.
