Five years of USD Coin: Is the investment really worth it?

Five years of USD Coin: Is the investment really worth it?

On August 27, 2025, USD Coin (USDC) was trading at $0.9999. This stablecoin, which aims to maintain a value of at least $1, has shown remarkable stability since its launch in September 2018 by the CENTRE consortium, consisting of Coinbase and Circle. Five years ago, on August 28, 2020, the price was $1,000, indicating the intended price peg.

A hypothetical $1,000 investment in USDC five years ago would be worth just $999.82 today, a minimal loss of 0.02 percent. This data makes it clear that USD Coin can broadly maintain its value, which is key for stablecoins. But the performance shows not only stability, but also some fluctuations: USDC reached a 52-week low of $0.9992 on June 3, 2025 and a 52-week high of $1.001 on January 19, 2025.

Technological basics and usage of USDC

USDC was originally launched as an ERC-20 token on the Ethereum blockchain, but is now available on many other platforms and is primarily used in decentralized finance (DeFi) applications such as Compound and Aave. The stablecoin enables stability typically associated with fiat-based currencies, but without the frequent volatility of most cryptocurrencies.

When using USDC, investors benefit from the opportunity to redeem their tokens 1:1 for USD with the issuer. In addition, Circle issues a monthly confirmation from Grant Thornton LLP confirming that all USDC tokens in circulation are fully backed by cash and short-term US Treasury securities. This transparency underlines the trust in the stability and security of the stablecoin.

Market development and market position

Following the example of the popular stablecoin Tether (USDT), USDC has emerged as one of the most successful stablecoins and is establishing itself as one of the top 10 digital assets on the market. Despite the dominance of USDT, which has the largest market capitalization and trading volume, USDC has gained investors' attention due to its transparency and the possibility of use in various DeFi protocols.

The circulation supply of USDC is growing dynamically. It increases as new tokens are minted and decreases as users redeem their USDC for USD. USDC's significant supply milestones range from 50 million tokens in October 2018 to 50 billion tokens in February 2022, illustrating the coin's growth and adoption in the crypto space.

Overall, it shows that the USD Coin plays a key role in digital financial transactions in the crypto world thanks to its stability-oriented design and versatile application and enables many users to keep their capital in a stable digital asset.