Stablecoins play a vital role in the crypto industry. Unlike other cryptocurrencies, which can experience significant price volatility, stablecoins are designed to have a consistent and steady value. This stability makes them a reliable medium of exchange and a store of value within the crypto ecosystem. Here, we'll discuss USDC, the second-largest stablecoin. What does USDC crypto do? What is the USDC price prediction for 2023-2030? These and many other questions about USDC will be answered in this article.

What is USD Coin (USDC)?

USD Coin (USDC) is a stablecoin that is pegged to the US dollar on a 1:1 basis. Each USDC token is backed by $1 in reserve. It provides stability and is widely used for trading, transactions, and various financial applications in the crypto industry.

I think what Tether has been able to do is really impressive. But I think the problem that we're trying to solve is different. They've developed something that's been a really strong asset, in particular in Asian markets, but we've gone to the heart of regulation from the start and really tried to build something that's transparent and compliant. — Jeremy Allaire, Co-Founder and CEO of Circle.

The history of USDC

USDC was launched in 2018 by Centre Consortium, founded by two well-known cryptocurrency companies, Circle and Coinbase.

In June 2022, USDC's market capitalisation exceeded $55 billion, but by the end of July 2022, it had fallen and has been declining ever since.

On 11 March 2023, following the collapse of Silicon Valley Bank the day before, USDC lost its peg to the dollar due to about 8% of Circle's reserves being at risk. Four days later, the peg to the dollar was restored.

In August 2023, Circle and Coinbase closed the Centre Consortium. The sole governance of USDC was given to Circle. In September 2023, Circle announced that the name "USD Coin" would be phased out. USDC became the official name and symbol of this stablecoin.

USDC's features

USDC is a centralised stablecoin and is issued and operated under US law. Despite its centralised nature, USDC is open-source.

USDC's price is kept stable by providing each token with one US dollar in reserve. Businesses can open a Circle Mint account to exchange US dollars for USDC. USDC tokens are issued according to the following procedure:

1. Business deposits US dollars into the Circle Mint account.
2. Circle uses a smart contract to issue a similar amount of USDC tokens.
3. The newly issued tokens are sent to the customer, and the US dollars are held in reserve.

When USDC is exchanged back into US dollars, the tokens are irrevocably burned, and the funds from the reserve are returned to the customer.

As of 12 October 2023, over 94.82% ($23.8bn) of USDC's collateral is held in the Circle Reserve Fund. The portfolio of the Circle Reserve Fund, which can contain short-dated US Treasuries, overnight US Treasury repurchase agreements, and cash, is kept at The Bank of New York Mellon and is managed by BlackRock. USDC reserves are regularly attested by Grant Thornton, LLP, one of the largest accounting and consulting organisations in the United States.

USDC was originally launched on the Ethereum blockchain as an ERC-20 token but is now natively available on 15 blockchains: Algorand, Arbitrum, Avalanche, Base, Ethereum, Flow, Hedera, NEAR, Noble, OP Mainnet, Polkadot, Polygon PoS, Solana, Stellar, and TRON.

How to buy and sell USD Coin crypto

USDC is currently among the top 10 cryptocurrencies and is the second-largest stablecoin. Buying and selling it is easy.

USD Coin (USDC) price analysis

As of 20 October 2023, the USDC token ranked 6th among cryptocurrencies by market capitalisation at $25,395,384,567.

USDC price statistics (as of 20/10/23)

USDC's price history

By the very idea of a dollar-pegged stablecoin, one USDC should always be worth $1.00, but in reality, the price of USDC fluctuates a bit. When demand is high, the price can go higher than $1.00. When USDC is actively being sold, it can get cheaper. But no significant long-term deviations of USDC's price from $1.00 have occurred yet. All major deviations have been very short-term, and the price has quickly returned to $1.00.

USDC/USDT price chart

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USDC technical analysis

Since USDC's price is by design pegged to the US dollar and shows only minor fluctuations, it makes no practical sense to conduct a technical analysis of USDC.

USD Coin (USDC) price prediction 2023

If no major problems occur at Circle, USDC's issuer, the token's price will remain at around $1.00.

USD Coin (USDC) crypto price prediction for 2023, 2025, 2030 and 2040

So, what do popular forecasting services think about the future price of the dollar-pegged stablecoin? Let's find out.

Wallet Investor's USDC coin price prediction for 2023, 2025, 2030 and 2040

According to Wallet Investor's predictions, USDC's price will decline in the coming years. They believe the price will be $0.983 at the end of 2023, $0.903 at the end of 2024, $0.823 at the end of 2025 and $0.661 at the end of 2027.

CoinCodex's USDC coin price prediction for 2023, 2025, 2030 and 2040

CoinCodex expects a collapse of USDC's price as soon as next year. According to them, it'll be in the range of $ 0.0673 - $0.0695 in 2024, in the range of $0.0674 - $0.0675 in 2025, and it'll reach $0.0005 in 2030.

DigitalCoinPrice's USDC coin price prediction for 2023, 2025, 2030 and 2040

DigitalCoinPrice doesn't expect USDC's price to change. They believe the average price of $1.01 will remain at least until 2032.

Gov Capital's USDC coin price prediction for 2023, 2025, 2030 and 2040

Gov Capital also doesn't anticipate the price to change. They predict that in the next 5 years, the token price will only deviate slightly from $1.00.

CryptoPredictions'USDC coin price prediction for 2023, 2025, 2030 and 2040

CryptoPredictions forecast that the average USDC's price over the next 4 years will be $1.008.

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USD Coin (USDC) overall future value predictions

Is USD Coin crypto a good investment?

USDC is a stablecoin, and if you want to invest for profit, this token isn't what you need. Its price has almost no volatility. However, stablecoins are quite handy assets for waiting out periods of crypto market declines. And from this point of view, it has its pros and cons compared to other stablecoins.

Some key advantages of USDC:

1. Stability. USDC is designed to maintain a 1:1 peg to the US dollar, and its price is more stable than that of many competitors. Its price stability makes it a reliable medium of exchange and a store of value in the cryptocurrency market.
2. Transparency. USDC issuers provide detailed information about their reserves, making the stablecoin's operations transparent.
3. Regulatory compliance. USDC is known for its strong emphasis on regulatory compliance.
4. Multi-platform support. USDC isn't tied to a single blockchain. It's available on multiple blockchain platforms. This multi-platform support provides users with flexibility and choice in their transactions and operations.
5. Widespread adoption. USDC has gained broad adoption and is supported by numerous cryptocurrency exchanges, wallets, and DeFi platforms. This widespread adoption means that users can easily acquire, store, and transact with USDC in various applications.

Disadvantages of USDC:

1. Centralised issuer. USDCs are issued and managed by a centralised organisation, Circle. The issuer of the coin has complete control over it and can freeze or confiscate funds, close accounts, and enforce regulatory decisions without regard for the interests of users. What's more, the company already has a history of blocking user accounts at the request of regulators. 
2. Counterparty risk. Since USDC is centralised, users face counterparty risk associated with the issuer. If Circle faces financial or regulatory challenges, it could affect the stability and availability of USDC.
3. Limited privacy. USDC doesn't prioritise privacy features. It operates with a focus on regulatory compliance and transparency.

Will USDC reach $100?

No, that's not going to happen. The very idea behind this coin is that its price is always $1.00.

How high can USDC go?

USDC's price is subject to only minor deviations. Short-term price increases due to demand are possible, but the price quickly returns to intended.

USD Coin (USDC) price prediction today

So far, there's no indication that USDC's price will deviate noticeably from $1.00 in the near term.

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