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 2024-2040? 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% ($23.8 billion) 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.

Buying and selling USD crypto coins on StormGain is a straightforward process. StormGain supports easy USDC deposits and withdrawals. The platform provides a secure built-in wallet for storing your USDC and other cryptocurrencies. You can leverage up to 300x on USDC trades to potentially increase your profits or losses.

Buying USDC:

1. Create an account on StormGain and complete the sign-up process.
2. Add funds to your account using methods like bank transfer, credit/debit card, or cryptocurrency.
3. Locate the USDC trading pair on the platform by searching "USDC" or browsing the "Stablecoins" section.
4. Place a buy order, specifying the amount and price. You can opt for a market order to buy at the current price or a limit order to set a specific price.
5. Confirm your purchase, and the USDC tokens will be credited to your StormGain balance.

Selling USDC:

1. Log into your StormGain account and find the USDC trading pair.
2. Place a sell order by specifying the amount and price.
3. Confirm the sale, and the proceeds will be added to your account balance.
4. Withdraw your funds to an external wallet or bank account as desired.

USD Coin (USDC) price analysis

As of 28 August 2024, the USDC token ranked 6th among cryptocurrencies by market capitalisation at $34,398,816,273.

USDC price statistics (as of 28/08/24)

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. However, no significant long-term deviations in 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.

If we look at the USDC stable coin price history of the past year, from August 2023 to August 2024, USD Coin (USDC) maintained a stable value, closely aligning with its US dollar peg. Key price movements during this period include early August 2023, where USDC traded at approximately $1.00, with minor fluctuations. By mid-August, prices briefly peaked at $1.0300 before stabilising again. The last quarter of 2023 saw consistent trading near $1.00, with minor dips below this mark in early 2024. 

By August 2024, USDC remained stable at around $1.00, supported by strong market capitalisation and liquidity. Ongoing regulatory scrutiny also shaped market dynamics and confidence in stablecoins like USDC.

USDC/USDT price chart

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USDC technical analysis

USDC (USD Coin) is a stablecoin tied to the US dollar, aiming to maintain a 1:1 value ratio with the USD. While less volatile than other cryptocurrencies, USDC is still influenced by market dynamics. As of August 2024, USDC has remained close to its $1.00 peg, reflecting its stability. Technical indicators provide insight into its trading behaviour: the RSI typically stays neutral, moving averages align closely with $1.00, and Bollinger Bands suggest low volatility. Trading volume fluctuates with market conditions, and USDC's stability makes it a favoured asset during market volatility and uncertainty.

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) price prediction 2024

In 2024, predictions for USD stable coin price suggest it will generally maintain its peg to the US dollar, trading between $0.9745 and $1.02, with an average price of $1.00, according to various sources. Technical analysis shows a bullish trend in the short term, with the 50-day moving average rising and the 200-day moving average remaining bullish since December 2023. The Relative Strength Index (RSI) is neutral, indicating price consolidation.

USD Coin (USDC) crypto price prediction for 2024, 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 2024, 2025, 2030 and 2040

Wallet Investor's predictions for USD crypto coins suggest a downward trend, with the stablecoin expected to drop to around $0.903 by the end of 2024, reflecting concerns about the stablecoin market's stability. The forecast indicates a further decline to approximately $0.823 by the end of 2025, and by 2030, USDC could be valued at about $0.661, pointing to long-term depreciation.

CoinCodex's USDC coin price prediction for 2024, 2025, 2030 and 2040

CoinCodex's predictions for USD cryptocurrency indicate a steep decline in value, with the stablecoin expected to drop to between $0.0673 and $0.0695 in 2024, signalling a significant departure from its dollar peg. The bearish trend is projected to continue into 2025, with prices forecasted between $0.0674 and $0.0675, raising concerns about USDC's long-term stability. By 2030, CoinCodex anticipates an even more drastic decrease, with USDC potentially falling to around $0.0005, suggesting a severe collapse in value and major challenges within the stablecoin market.

DigitalCoinPrice's USD crypto coin price prediction for 2024, 2025, 2030 and 2040

DigitalCoinPrice predicts that USD Coin (USDC) will maintain its stability around $1.00 in the coming years, reflecting its design as a stablecoin pegged to the US dollar. This consistency is expected to continue through 2024, 2025, and even into 2030 and 2040, with USD token holding its value at approximately $1.00 throughout these periods.

Gov Capital's USDC coin price prediction for 2024, 2025, 2030 and 2040

Gov Capital's price predictions for USD cryptocurrency indicate a bullish outlook, with the stablecoin expected to reach approximately $1.66 in 2024 and exceed $5.50 by 2025, suggesting strong confidence in USDC's growth and utility in the cryptocurrency market. Although specific figures for 2030 aren't provided, the trend implies that Gov Capital expects USDC to continue its upward trajectory and maintain its significance within the broader financial ecosystem.

CryptoPredictions'USD stable coin price prediction for 2024, 2025, 2030 and 2040

CryptoPredictions anticipates that USD Coin (USDC) will maintain slight gains above its $1.00 peg, with projections of $1.006 by the end of 2024 and $1.008 in both 2025 and 2030. This forecast reflects confidence in USDC's long-term stability as a reliable stablecoin. Although specific predictions for 2040 are not provided, the consistent trend suggests that USD crypto coins will continue to trade close to its $1.00 mark, solidifying its role as a dependable asset in the cryptocurrency market.

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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 should always be $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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