Coinbase Wallet, the digital wallet platform of leading cryptocurrency exchange Coinbase, has unveiled a new incentive program for holders of USDC, the USD-pegged stablecoin. Eligible users can now earn a 4.7% annual percentage yield (APY) by holding USDC in their Coinbase Wallet on Base, Coinbase’s Layer 2 network.
Key Features of the USDC Incentive Program
- Global Accessibility: The yield reward is available to users worldwide, with U.S. customers gaining access this week.
- Monthly Payouts: The 4.7% APY is distributed monthly, providing passive income for stablecoin holders.
- Competitive Upgrade: This follows Coinbase’s recent increase of USDC rewards from 2% to 4%, reflecting its commitment to boosting adoption.
Why Coinbase Is Promoting USDC
According to Coinbase’s FAQ, the exchange funds these rewards using its own assets to incentivize users to store USDC on its platforms. This strategy aligns with Coinbase’s broader goal of expanding its ecosystem and enhancing user engagement.
👉 Discover how to maximize your crypto earnings with USDC
USDC’s Market Position
Launched in 2018 through a collaboration between Coinbase and Circle, USDC has grown to become the second-largest USD-backed stablecoin, trailing only Tether’s USDT. As of November 20th:
- Circulating Supply: ~25% of the total 107.33 billion stablecoins in circulation (The Block Data Dashboard).
- Trust Factor: Backed 1:1 by cash and short-duration U.S. Treasuries, ensuring stability.
Broader Crypto Market Trends
Bitcoin Outshines Traditional Assets
The crypto market continues its bullish trajectory:
| Asset | 1-Month Performance |
|-------------|---------------------|
| Bitcoin | +46% |
| Gold | -3% |
Analysts attribute this divergence to shifting institutional sentiment, with Bitcoin increasingly viewed as a high-growth investment.
Regulatory Impact on Gold
The Federal Reserve’s hawkish stance—reinforced by Chair Jerome Powell’s reluctance to cut rates—has dampened gold’s appeal as an inflation hedge, further driving interest toward crypto assets.
FAQ: USDC Rewards Program
Q1: Who is eligible for the 4.7% APY?
- All global users holding USDC in Coinbase Wallet on Base. U.S. residents gain access this week.
Q2: How often are rewards paid?
- Monthly, directly into the wallet.
Q3: Why did Coinbase raise the APY from 4% to 4.7%?
- To remain competitive and attract more users to its ecosystem.
👉 Learn more about stablecoin strategies
Note: This article is for informational purposes only and does not constitute financial advice.
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