USD Coin Experiences Major Growth After Market Crash

Circle’s USD Coin experiences a major growth after the recent market downturn as people choose stablecoins rather than bigger cryptocurrencies such as Bitcoin while trying to preserve their capital. Some of the stablecoins have increased in value more than others as we are about to see in the USD coin price prediction news.

The stablecoin market caps are expected to increase even further after the major crypto market downturn. However, this is not the case with many stablecoins during the past week. According to the data from Coin360, Bitcoin dropped from a height of more than $8,000 to less than $4,000 between March 12 and March 13. The co-founder and CEO of Circle Jeremy Allaire, the company that is behind the USD Coin (USDC) noted that during March 14, the market cap of the stablecoin reached a new high of $568 million after the recent market downturn. He commented:

 “While not as exciting to see markets so crushed, it’s still rewarding to see that this entirely new, entirely digital, blockchain based monetary infrastructure is working.”

Allaire expects that the demand will stablecoins will increase dramatically in the short term as people and businesses will demand a better architecture where they can send and receive payments with fewer counterparty risks and more security. He also noted that the coronavirus pandemic made the need for infrastructure that is more decentralized much apparent. According to the data, however, the USD Coin market cap increased by more than 5 percent right after the Bitcoin price dropped to its lowest point. During that time, USDC reached a market cap of about $553 million and the market cap of the stablecoin dropped sharply, reaching its previous levels of about $520 million. The price increased later by more than 7 percent which is the level where the price stabilized.

The initial reaction of the USD Coin to the downturn on the market was similar to the other major stablecoins. Tether, Binance USD, Paxos, and True USD all saw a massive increase in their market cap after the downturn right before normalizing a few moments later. The reason that USDC saw a huge growth is unclear. This price movement came after the announcement by Circle of three new APIs for businesses that are meant to use the stablecoins and to try and replace the fiat currency channels. All major stablecoins experienced a slow growth recently which can be seen at the crypto data website, CoinCodex.