USDC Price (USDC)

USDC (formerly USD Coin) is a type of cryptocurrency called a "stablecoin". It is designed to be pegged to the value of the US dollar, which means that each USDC token represents one US dollar. The main purpose of stablecoins like USDC is to provide a reliable and stable digital asset that can be used for transactions on the blockchain.

USDC is issued by Circle, and until recently was part of a greater organization called the Centre Consortium that included companies like Coinbase among its members.

The USDC stablecoin is backed by reserves held in traditional regulated financial institutions, such as cash and short-dated U.S. treasuries. These reserves ensure that every USDC token is fully backed by its equivalent value in US dollars, providing stability and confidence in its value.

One of the key benefits of USDC is its ease of use and accessibility. It operates on various blockchain platforms like Ethereum, Algorand, Stellar, and Solana, allowing for quick and seamless transactions that can be conducted 24/7.

Traders and investors often use USDC to hedge against market volatility, as it provides a stable digital asset that can be easily converted back to fiat currency when needed. USDC serves as a convenient way to store and transfer funds on cryptocurrency platforms, avoiding the fees and time delays associated with fiat currency transfers.

USDC Price History 

2018

USDC was listed on exchanges in October 2018 at a price of $1.0043. The USDC price throughout the year maintained its peg and stayed as close to $1 as possible. USDC was trading at $1.01 in December 2018.

2019

USDC briefly fell from its peg in the first half of 2019 and was trading slightly above $1. In the second half of the year, it started to trade below $1. By December 2019, USDC was trading at $1.0029.

2020

In 2020, USDC faced significant fluctuations in value. In February, USDC lost its peg and reached a highest price paid of $1.032. USDC later declined to its lowest price of all time just below $0.97 the following month.

2021

The USDC price in 2021 stayed relatively stable with no price fluctuations.

2022

The price of USDC stayed stable throughout 2022.

2023

In March, the USDC price de-pegged and dropped to as low as $0.94, before rebounding and remaining stable.

How does USDC work?

USDC aims to provide price-stable digital money that is backed by fiat reserves to alleviate monetary hurdles. The design of USDC follows a fiat-collateralized approach, where each unit of tokenized fiat currency is backed by an equivalent amount of collateral.

Circle (previously CENTRE) establishes a network of token-issuing members who hold reserves and provide liquidity for USDC tokens. These members are required to meet regulatory requirements, undergo audits, and maintain solvency. Circle and CENTRE themselves have provided governance and ensure compliance and solvency from all its licensed issuing members.

The interaction between a token-issuing member and Circle is facilitated through smart contracts and a set of protocols. The smart contracts define the rules and functionality of the network, while the protocols govern the interactions between the participants.

To ensure security and scalability, Circle utilizes state channels. State channels allow participants to update shared states between them securely without executing transactions on a distributed ledger. Participants agree to an initial state on the ledger, and subsequent updates are executed off-chain. The final state is then committed to the ledger when the participants agree to close the channel.

State channels can also be chained to enable payments to additional parties. This allows for transfers to occur through intermediaries without the need for direct channels between all participants. Hashed Timelock Contracts (HTLCs) ensure the secure execution of chained payments.

Nodes that represent network participants consist of smart contracts deployed on Ethereum and code that interacts with Ethereum and the smart contracts. Circle allows for the flexibility of replacing or extending different components of a node through well-defined modules and API interfaces.

Who are the founders of USDC?

USDC was founded by Circle, a peer-to-peer payments technology company co-founded by Jeremy Allaire and Sean Neville in October 2013.

USDC is backed by Circle and Coinbase, along with other members of the previous consortium called CENTRE.

What is USDC used for?

USDC enables instant and low-cost person-to-person and person-to-merchant payments using digital wallets. USDC facilitates cross-border payments by providing a common currency standard, eliminating the need for currency conversions, and reducing transaction costs.

USDC provides stability and fiat connectivity within crypto asset exchanges and for token swaps. Users can trade their more volatile cryptocurrencies for USDC, maintaining a relatively stable value while still participating in the crypto market.

Circle plans to offer a service provider mechanism to support trust, identity verification, payment settlement rules, and compliance obligations such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

What makes USDC unique?

The composition of the USDC reserve contributes to USDC’s uniqueness from other stablecoins and crypto assets. 

80% of the reserve consists of short-dated U.S. Treasuries, which carry the full faith and credit of the United States and are highly liquid. The remaining 20% is held as cash deposits within the U.S. banking system, satisfying immediate liquidity needs.

Daily independent, third-party reporting ensures transparency and accountability for the reserve, down to each individual security. 

In the unlikely event of a Circle bankruptcy, the USDC reserve would remain separate and protected, ensuring the interests of USDC holders.

How can I mine or stake USDC?

Unlike some other cryptocurrencies like Bitcoin, USDC doesn't have a mining or staking process, though USDC is a popular token pairing used in liquidity pools.