$USDC : Is Stable But Not Fully Safe? Check Out the Latest Facts
š June 20, 2025 ā Amid the dominance of Tether (USDT) in daily transaction volume, USD Coin (USDC) is back in the spotlight due to a surge in adoption in the institutional sector and the DeFi ecosystem. Circle, as the issuer, claims transparency and full backing from cash assets and short-term US bonds. But is that enough to ensure long-term stability?
ā ļø The issue is, USDC is not without risks. Last year, it briefly lost its 1:1 peg to the dollar due to exposure to a failed bank. Although Circle quickly addressed its funds, that moment showed that even stablecoins with regulatory backing still have vulnerabilities. Additionally, competition from algorithmic stablecoins and CBDCs is also beginning to threaten its dominance.
š The solution? Investors and traders need to distinguish between "stable" and "resilient." USDC is suitable for on-chain activities that require stability and compliance, but do not treat stablecoins ā of any kind ā as a long-term store of value. Monitor reserve transparency, audit reports, and cross-chain integration. In the crypto world, nothing is truly stable ā only the adaptive survive.
