There is a cryptocurrency that is “making a comeback,” Coinbase shows

Although Tether’s USDT remains the leading stablecoin, one of its rivals is growing strongly in 2024.

One stablecoin is attracting attention due to its resurgence and that is USD Coin (USDC), allowing it to have substantial growth so far in 2024. This is shown by data from the second largest cryptocurrency exchange on the market, Coinbase.

The supply of USDC, a currency issued by the company Circle, has shown an increase of 14.3%, exceeding $3.5 billion since December 1, 2023, indicates a report from the exchange.

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This increase has raised the total market capitalization of USDC to $28 billion, as shown in the following graph, marking a positive change after experiencing declines in the first three quarters of last year.

USDC market capitalization. Source: Coinbase

One of the factors that have driven this “resurgence” of USDC is its expansion beyond the borders of the United States. “It has increased its share of spot and derivatives activity almost fivefold, although to a still low 4% of total CEX volume globally,” says Coinbase.

This is also added to the re-listing of USDC on the Binance exchange. The exchange had, for a few months, dispensed with several stablecoins on its trading platform, leaving only USDT and BUSD (the rest of the stablecoins could only be used for deposits or withdrawals).

USDC drives the entire stablecoin market, but USDT dominates

David Shuttleworth, a researcher at Anagram and former member of Binance Labs, commented via X that, in one month, the total market capitalization of stablecoins increased by 4.$500 million.