USDC Expands At 2021 Levels—What’s Driving The Surge?
The stablecoins market has surpassed $200 billion, driven primarily by Tether's USDT and USDC. Since November, the market has increased by $37 billion. USDC is gaining market share from USDT, supported by altcoin trades that often convert to USDC, enhancing its supply. USDC is approaching a key resistance level, with price movements reminiscent of 2021. Unlike USDT, USDC benefits from strong institutional backing and regulatory clarity, making it more appealing to investors. Smaller stablecoins have stagnated since 2023, facing liquidity issues and lack of institutional support. The dominance of USDT and USDC raises concerns about the future of other stablecoins. USDC's current price action suggests a bearish outlook as investors seek stability amidst altcoin volatility.
