Circle Mints 50M USDC Amidst Growing Stablecoin Competition
1min read Circle, the issuer of the popular stablecoin USDC, has minted an additional 50 million USDC on the Ethereum network, according to on-chain data tracking service Whale Alert. This latest minting brings the total supply of USDC to over 34 billion.
The minting of new USDC comes amidst a growing competition in the stablecoin market, with various projects vying for dominance. One such project is Ethena Labs' usde, a synthetic stablecoin that maintains its peg through collateralization and futures trading. USDe has been gaining traction in the industry, with several partnerships and investments, including a $100 million funding round backed by major investors like Franklin Templeton.
Recently, Ethena Labs announced that USDe can now be minted and redeemed on Bybit, one of the largest cryptocurrency exchanges. This integration is expected to help users seamlessly move between USDe and other stablecoins at fixed costs, supporting deeper liquidity on the exchange. Additionally, USDe holders can earn rewards for holding the stablecoin and using it as derivatives margin collateral.
USDe's popularity has also been boosted by its potential as a safe haven during periods of market volatility. Arthur Hayes, chief investment officer of Maelstrom, has revealed that his digital asset fund has raised its exposure to USDe to record levels. Furthermore, the US Securities and Exchange Commission (SEC) has approved the country's first yield-bearing stablecoin security, signaling its intent to accommodate the rapidly growing stablecoin market.
As the stablecoin market continues to evolve, Circle's minting of additional USDC highlights the growing demand for stablecoins in the cryptocurrency ecosystem. With USDC being one of the largest stablecoins by market capitalization, its continued growth is a testament to the trust and reliability it offers to users.
