USDC Price

About USDC

USDC is a stablecoin designed to mitigate the fluctuations seen in other cryptocurrencies by maintaining a stable value pegged to the US dollar. Despite its stability, USDC still experiences some shifts in price due to changes in supply and demand. The price of USDC hit an all-time high of $1.19 in May 2019 and an all-time low of $0.891848 in May 2021. During bullish market conditions, the demand for stable assets like USDC decreases, causing its price and other US dollar-backed stablecoins to fall below $1. Nonetheless, USDC has generally maintained stability at $1 over extended periods.

USDC has no fixed maximum supply, and new tokens are issued in response to demand. When a user redeems USDC for $1, the equivalent amount is permanently removed from circulation through a process known as burning, and funds are transferred from underlying reserves to the user’s external bank account.

How it works

USD coin is a digital token that represents the U.S. dollar on the blockchain. Created through a partnership between Coinbase and Circle, USD coin allows traders to hold their portfolio’s dollar value during volatile market conditions without having to convert their crypto to fiat currency. The tokenization of U.S. dollars also enables faster and cheaper transfers via blockchain networks, compared to traditional banking methods.

To create USD coin, users must deposit U.S. dollars into the token issuer’s bank account and interact with the corresponding smart contract on the desired blockchain. The reverse process can be done to redeem USDC for U.S. dollars.

USDC is available on several public blockchains, including Ethereum, Solana, Algorand, Stellar, Tron and Hedera, and is compatible with all blockchain features, including DeFi and smart contracts.