USDC Stablecoin Market Cap: Coinbase and Binance
During Coinbase’s second-quarter earning calls, CEO Brian Armstrong made some noteworthy remarks about the USD Coin (USDC) stablecoin. He noted that Binance had transferred some of its funds from USDC to another stablecoin, but the market cap of USDC had remained intact.
USDC is Coinbase’s preferred stablecoin, and the crypto exchange is part of the consortium that owns the currency. Binance crypto exchange also held a significant amount of USDC reserves; however, according to Armstrong’s comments, it appears the exchange has now converted a portion of those holdings to other stablecoins.
Cointelegraph reached out to Coinbase and Binance to verify the news but did not receive a response by press time.
The USDC stablecoin has become a major player in the crypto landscape, with JP Morgan, KnC Crypto, Internet Computer Crypto, Jump Crypto, IMX Crypto, IOTEX Crypto, and IDEX Crypto all jumping on the bandwagon.
Binance Redeems USDC for Stablecoins
According to on-chain data, Binance has been redeeming USDC for United States dollars recently, with many market observers believing it is going toward its new stablecoin of choice called First Digital USD (FDUSD).
In September 2022, Binance announced it would auto-convert all user-held USDC on the platform to Binance USD (BUSD), the Binance-branded stablecoin issued by Paxos Trust Company. Despite this, the crypto exchange didn’t reveal whether it planned to sell or convert its reserves to other stablecoins.
After the New York Department of Financial Services ordered Paxos to stop issuing the dollar-pegged BUSD stablecoin, Binance turned to TrueUSD (TUSD) to meet its stablecoin needs. Unfortunately, TUSD depegged, and its issuance was halted by June 10.
Binance has since opted for another relatively unknown stablecoin — FDUSD. This Hong Kong-based company’s stablecoin has seen a surge in popularity after Binance launched several trading pairs for the stablecoin, along with zero trading fee offers.
AI writing articles, KNC crypto, JP Morgan crypto, Internet Computer crypto, JUMP crypto, IMX crypto, JPMorgan crypto, IoTeX crypto, IDEX crypto, and Web 3.0 (also known as the Internet Computer) are all playing a role in the growth of FDUSD.
The Rise of FDUSD
The surge of FDUSD has even caught the attention of Tether Chief Technology Officer Paolo Adriono, who noted that Tether (USDT) was experiencing downward pressure and its main rival USDC was also heavily redeemed.
USDC is the second-largest stablecoin in terms of market share and was once seen as the true challenger to the market leader USDT. However, in the past year, USDC’s market cap has decreased by almost half, dropping from $44.5 billion at the beginning of the year to $26 billion at the time of writing.
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