As of November 20th, USDC represented approximately 25% of the total stablecoins in circulation. Users worldwide now have access to rewards for holding USDC.
Coinbase Wallet, the digital wallet platform of leading cryptocurrency exchange Coinbase, has introduced a new reward program for USDC, a stablecoin pegged to the US dollar. Through the Coinbase-incubated Layer 2 network, Base, users holding USDC in their Coinbase Wallet can now earn an annual percentage yield (APY) of 4.7%, distributed monthly. While the feature is now available globally, U.S. users can expect access within the week.
Previously, Coinbase raised the APY for USDC holders from 2% to 4%. According to Coinbase’s FAQ, the exchange funds these rewards from its own resources to encourage broader adoption of USDC on its platform.
Launched in 2018, USDC was developed in collaboration between Coinbase and Circle. As of August 2023, the exact size of Coinbase’s equity investment in Circle remains undisclosed. Among USD-backed stablecoins, USDC ranks second in popularity behind Tether’s USDT. By November 20th, USDC accounted for about 25% of the 107.33 billion stablecoins in circulation, based on data from The Block’s Data Dashboard.
Bullish Market Trends
The cryptocurrency market has been experiencing sustained bullish momentum. While gold has lost over 3% of its value in the past month, bitcoin has surged by nearly 46%. Experts attribute this to a shift in institutional investors’ sentiment, as bitcoin gains traction as a high-growth investment vehicle, highlighting a contrast between the two assets.
Meanwhile, ahead of Donald Trump’s inauguration, derivatives traders are actively purchasing bitcoin call options, reflecting optimism about the cryptocurrency’s future. Interest in gold has waned due to the Federal Reserve’s recent aggressive policies. Fed Chair Jerome Powell’s reluctance to lower interest rates has kept U.S. Treasury yields elevated, further diminishing gold’s appeal as a traditional hedge against inflation.
