Coinbase Offers 1.25% Interest on USDC Deposits
Coinbase is offering a 1.25% annualized rate on USDC deposits, as part of its USDC Rewards program. The yield will be available to US-based customers.
— Coinbase (@coinbase) October 2, 2019
USDC is Fastest Growing Stablecoin
USDC is the fastest-growing stablecoin just a year after its launch, with more than 455 million coins in circulation. The asset attracted buyers for its full transparency and compliance, with significant minting noticed in the past weeks. The USDC supply has grown by 8% in the past day alone, and the coin now takes up 1.16% of the stablecoin market.
USDC is on track to enter the top 20 of digital coins by market capitalization. The stablecoin already carries 156 pairs, with a highly active USDC/USDT market on Binance. Most USDC activity is seen on BitMart. USDC is also paired with algorithmic stablecoin DAI.
The interest rate offering matches a recent trend in the crypto market. Binance is giving new use cases to multiple altcoins, and offers a much higher 7% annualized rate for USDC. But the Binance program also includes a form of crypto lending.
USDC is offering a smaller incentive for those that choose to keep their coins on the exchange. USDC is an asset that is comparatively more controllable by Coinbase and Circle, Inc., as the companies can dictate the minting and burning of the tokens.
USDC Lending Offers Even Higher Interest Rates
So far, alternative stablecoins have only chipped away at the dominance of Tether (USDT), though USDC has been among the most successful competitors. The leading dollar-pegged coin still controls 97% of the stablecoin market, and as much as 35% of all crypto-to-crypto exchanges. Smaller stablecoins are often used to liquidate to fiat. But for now, USDC is seeing fewer token burns, in comparison to tokens that saw their supply dwindle, as in the case of Gemini USD (GUSD).
USDC is also highly active on Poloniex, where it’s a part of the crypto lending program offering 10% interest rate.
— Poloniex Exchange (@Poloniex) August 16, 2019
Poloniex was one of the markets that diminished their exposure to USDT, and instead increased its holdings of the fully legalized stablecoin issued by its new owner, Circle, Inc.
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Images via Shutterstock, Twitter @Coinbase @Poloniex