The trading volume of USD Coin (USDC) is $4,604,642,742.99 in the last 24 hours, representing a -14.80% decrease from one day ago and signalling a recent fall in market activity. The highest price paid for USD Coin (USDC) is $1.17 , which was recorded on May 08, 2019 (over 4 years). Comparatively, the current price is -14.70% lower than the all-time high price. The lowest price paid for USD Coin (USDC) is $0.877647 , which was recorded on Mar 11, 2023 (6 months). Comparatively, the current price is 13.90% higher than the all-time low price. Market capitalization of USD Coin (USDC) is $25,775,491,459 and is ranked #6 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of USDC tokens (26 Billion tokens are tradable on the market today). The fully diluted valuation (FDV) of USD Coin (USDC) is $25,777,490,967 . This is a statistical representation of the maximum market cap, assuming total number of 26 Billion ETH tokens are in circulation today. The community is bearish as more than 75% of users are feeling bad about USD Coin (USDC) today.
1. Why should I buy a stablecoin such as USD Coin?
Primarily, a stablecoin such as USD Coin acts as a medium of exchange in the crypto community, allowing users in the community to buy and sell cryptocurrencies of his/her choice at any given time. Other than that, stablecoins such as USD Coin offer a financial hedge for people from high inflation economies with a more stable currency in the form of crypto.
2. Should I buy USD Coin now?
It is important to remember that even a stablecoin like USD Coin can be subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, it is important to manage your own financial portfolio and risk level. Users are advised to do your own research when making investment decisions in the crypto market.
3. How can the value of stablecoins such as USD Coin be maintained?
There are three types of stablecoins in the market: fiat-backed, crypto-collateralized and algorithmic.
Fiat backed stablecoins are maintained by cash reserves of a fiat currency such as USD or EUR, whereas crypto collateralized stablecoins are pegged to holdings of other cryptocurrencies such as BTC or ETH, instead of fiat currencies.
The most controversial of all would be algorithmic stablecoins, which are built on a blockchain and rely on a supply-and-demand algorithm to maintain the 1:1 price peg. As the demand increases to drive the price up, the protocol issues more supply to drop the price back to its pegged $1.00 price, and vice versa.