Voyager Digital Ltd, a cryptocurrency platform that is publicly traded, has recently announced a considerable rise in its USDC balance.
Since January, the firm’s USDC balance has surged to USD 460 million, indicating the increasing appeal of stablecoins pegged to the US dollar. USDC is a stablecoin that has a 1:1 ratio with the US dollar and is supported by Coinbase and Circle.
Voyager’s crypto liquidations have also accelerated significantly in March, with over USD 138 million moved since the beginning of the month, compared to a combined USD 221 million in January and February. This increase in activity indicates a growing demand for cryptocurrency trading and investment, despite recent volatility in the market.
However, the defunct exchange’s wallets still hold around USD 271.5 million in crypto assets poised for liquidation. The analytics portal, LookonChain, has confirmed Arkham’s data, showing a similar value left in its Ethereum wallets. Alongside Voyager’s liquidation, regulators are working hard to slow down the process.
The surge in Voyager’s USDC balance signifies the rising preference of cryptocurrency traders and investors towards stablecoins. These digital assets are gaining popularity due to their stable nature, allowing for more secure and consistent transactions, which is crucial given the erratic market behavior of conventional cryptocurrencies such as Bitcoin and Ethereum. With the cryptocurrency market continuously expanding and transforming, stablecoins are expected to have a more significant role in the industry’s future.