USD Coin (USDC) is one of the top-ranked digital currencies by the MarketCap in 2021. This Stablecoin is moving up the crypto ladder as it is ranked 7th among thousands of digital currencies in the world.
USD Coin has a market capitalization of $42.41 billion and a circulating supply of over 42 billion.
In this article, we’ll learn about USD Coin. This will be of importance to investors who want to diversify their portfolio especially Stablecoins in 2022.
What is USD Coin?
USD Coin is a digital currency that is pegged to the US Dollar. It has the trading symbol ‘USDC’.
This token runs on several platforms which include Ethereum, Stellar, Algorand, Avalanche, Solana, Tron and Hedera Hashgraph.
USDC is managed by a consortium called ‘Centre’ which was founded by Circle. The Stablecoin was launched in September 2018.
USD Coin
Tokenization of the USD to USD Coin
This take place through three-stage process. They are listed below;
1. A user sends USD to the coin issuer’s bank account.
2. The issuer uses a USDC smart contract to create the equivalent amount of USD Coin.
3. The newly minted USDC are sent to the user & the substituted USD are held in reserve.
Why Consider USD Coin in 2022?
USDC have some potentials to become larger and perform better than 2021. In March 29, 2021, Visa announced that it would allow the use of the USDC to settle transaction on its payment network.
The token is also listed in several crypto exchanges with a lot of users. As of December 31, 2021, USDC has a circulating supply of 42, 418, 549, 324 USDC.
It is therefore expected to grow bigger in 2022.
USDT (Tether) still remains the number one and leading Stablecoins to invest it. This token which is also pegged to the US Dollar is currently ranked 4th by MarketCap in the list of cryptocurrencies.
