Stablecoins have gained importance recently in the cryptocurrency space with the adoption by major institutions. Financial services company Stripe is the latest payment provider to add USDC support for merchants to pay their users with USDC stablecoin.
The growing adoption of Decentralized finance has also contributed to the increase in stablecoin adoption. Look no further if you are looking for USD Coin price prediction for 2022-2025. We will look at the pricing to see what to expect in the future price changes.
What is USD Coin?
USD Coin is a stablecoin collateralized by fiat currency at a 1:1 ratio. The token is an ERC20 standardized asset based on the Ethereum blockchain and backed by USD currencies in accounts. The objective of the USD is to address the issue of price volatility and the convertibility between fiat currency and cryptocurrency.
USDC was launched in 2018 by the CENTRE consortium, an entity created by Circle and Coinbase to build price-stabilized cryptocurrency assets and network protocol. USDC is tradable and can be lent, staked, or used in DeFi platforms. Most cryptocurrency exchanges have adopted USD Coins as an alternative to the fiat currency.
USDC is secured with the proof-of-reserves system that ensures that the reserve funds match the circulating tokens. CENTRE contracts supervise the minting and the redemption or burning of stablecoins used in exchange and wallet interoperability cases.
USD Coin seeks to address the shortcomings of Tether, the first stablecoin to launch in 2014. The platform publishes monthly proof of the total reserves of fiat tokens on CENTRE.io and gives members clear rules on USDC issuance and redemption. The CENTRE Consortium members must comply with licensing, technology and operations, accounting, compliance, and the custody of fiat reserves.
USD Coin: should you invest in USDC today?
USDC is a stablecoin that is pegged to the value of the USD. The digital asset is adopted in cryptocurrency exchanges to stabilize the price of Bitcoin and altcoins. The volatility of the crypto assets determines whether you should hold or sell USDC. The crypto market is currently facing a bearish momentum with major cryptocurrencies trading lower. It is, therefore, more ideal for holding assets in USDC until the market sentiment changes.
USDC price prediction for 2022?
As a stablecoin that is pegged to the USD, our USDC prediction will look into the possible deviation and its extent from the $1 peg. In 2022, USDC is projected to deviate from the $1 peg to $1.014 and could go as low as $0.9996. In 2023, the USDC peg to the dollar is projected to rise to about $1.012 and deviate to the downside to $0.9997 at a maximum for both scenarios.
The 2024 forecast predicts that USDC could deviate to $1.0009 at a maximum and $0.9996 to the downside. Our 2025 in depth analysis puts a maximum deviation of $1.009 to the upside in USDC and a maximum deviation of $0.9995 to the downside.
USDC past price analysis
CoinMarketCap ranks USDC as the fifth most valuable cryptocurrency with a market capitalization of $48,957,419,457.42. There are currently 48.96 billion circulating USDC tokens from an uncapped supply of 48,957,595,878.
USDC is currently trading at $0.9998 after a 0.06% drop in the past day and an increase of 0.01% in the past week. The daily trading volumes in the past day have remained at $3.82 billion and a slight drop to $3.81 billion in the past week. The monthly price outlook shows that USDC has dipped 0.05% from $1.0004. The three-month USDC price further shows a dip of 0.01% from $1.
USDC trading volumes in the past three months have surged from $2.52 billion to $3.81 billion, a 51.19% increase. The stablecoin price increased from $0.9997 to $0.9999 in the period. In the past year, USDC has seen its price move from $1.0002 with $3.28 billion in trading volumes to $3.84 billion. The all-time price outlook shows that USDC has become more stable since recording a significant deviation of $1.044 in January 2020 and $0.9702 in March 2020.
Want to buy USDC?
USD Coin is available on major exchanges, including Binance, Kraken, Coinbase, Uniswap (V2), OKEx, and Bitfinex. The tokens are listed against USDT, USDC, BUSD, WETH, various altcoins, and fiat currencies.
How to buy USD Coin?
Register a Coinbase account.
Add a payment method. Bank accounts, debit and credit cards, or wire transfers are supported on the platform.
Begin trading by selecting Buy from a list of options.
Enter the amount to buy on the number pad.
Click ‘Preview buy’ and complete the transaction.