Robinhood hasn’t been shy about it’s desire to be a player in crypto. The platform has had a few years of ups and downs as it’s navigated it’s crypto offerings. This week, however, the platform secured a win on the crypto front by listing it’s first stablecoin, USDC.
Our Knowledge
The news first came straight from the horses mouth, as Robinhood’s Twitter posted a tweetToday’s news was shared with you. The token is Robinhood’s 17th supported crypto, and third largest in market cap behind blue chips Bitcoin and Ethereum. It’s the latest token addition since adding Cardano (ADA) at the beginning of the month. This is Robinhood’s latest addition to the growing number of crypto tokens. In recent weeks, they also added Polygon.
Additionally, the move shows more bolstering growth for Circle’s USDC, which has sought out the number one spot over Tether’s USDT – the longtime dominant stablecoin. The narrative has been driven by an ideology that Tether’s account management is less transparent and straightforward than USDCs.
Robinhood (HOOD), had a tough year on the NASDAQ.Source: TradingView.com: NASDAQ: Robinhood (HOOD) has had a difficult year | Source: NASDAQ: HOOD on TradingView.com
Stablecoin Battle
In recent months, the good folks over at Arcane Research put together future growth projections based on USDC’s momentum this year, which shows USDC overtaking USDT’s number one spot as early as mid-October. The projected gap for today’s number is likely a bit closer than what we’ve seen in reality, however, signaling that a USDC takeover for the top spot could take another 4-6 months. That’s been exacerbated by USDC whale holdings percentage hitting a two-year low in recent weeks.
The team noted that the market’s overall movement and U.S. sanctions on Tornado Cash have driven this trend. Although USDC has had its exchange deposits significantly lower, mean transactions have remained high over the past months. The negative outlook on stabilitys has been influenced more by Tornado Cash than other factors like U.S. legislation regarding stablecoins, and crypto.
Robinhood’s adoption of USDC could help spur the growth in catching up with USDT’s lead. However, it remains to be seen how the more casual investor that typically frequents Robinhood will fare with a stablecoin asset, particularly one that doesn’t generate any interest.
Featured image taken from Pixabay. Charts taken from TradingView.com Disclaimer: The author of this article is not affiliated or connected to any parties listed in the article. This article is not meant to provide financial advice.
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