Hyped as the fastest-growing stablecoin in the world, USD Coin (USDC) recently gained support from US-based cryptocurrency exchange Kraken. The listing of the stablecoin to a new platform came a day after it had been delisted by major crypto exchange Binance.
USDC’s market cap last December closed at over $500 million. As per the industry’s record, this stablecoin is only the second to achieve such numbers in history. As of press time, USDC has a total market cap of over $4 billion.
However, despite its market dominance, Binance decided to delist the stablecoin along with its trading pairs, which include ALGO, FTM, ONT/USDC, XLM, and USDS. According to the exchange’s CEO, Changpeng Zhao, the only reason behind the removal is the stablecoin’s low liquidity and nothing else.
A surprising decision
While Kraken’s acceptance of the USDC can be attributed to the stablecoin’s massive success, some industry analysts still wondered how it happened. Notably, USDC was founded by industry competitor Coinbase with the help of Circle, a peer-to-peer payment tech company. The partnership paved the way for the establishment of the Centre Consortium, an open global financial system that was built on Blockchain infrastructure and crypto rails. The stablecoin was the first major initiative from the joint venture.
USDC is an Ethereum-based token whose value is pegged to the US dollar. Meaning, this stablecoin allows investors and traders to keep their money in a constant and transferable digital form if necessary.
The persisting issues associated with one of the world’s leading stablecoin, Tether (USDT), had opened the doors towards the creation of additional stablecoins. Furthermore, the pressure from regulators about the stability of USDT instilled fear in the minds of digital asset enthusiasts, which ultimately resulted to an influx of new stablecoins –with each one claiming to be the best.
Currently, Kraken and Coinbase Pro reign as two of the most significant spot exchanges in the United States. According to CoinGecko’s list of the top-performing crypto exchanges in terms of volume, the former ranks 4th. At the same time, the latter sits on the 3rd spot.