As USD Coin (USDC), has taken over USD Tether (USDT), the stablecoin market is experiencing a major shake-up.
USD Coin Supply for Ethereum Now Exceeds Tether
The latest Weekly Report from Arcane Research shows that USDC has become the biggest stablecoin on ETH Chain, surpassing USDT.
A “stablecoin” is a type of crypto token that has its value tied to a fiat currency. Due to this fact, these coins don’t suffer from much volatility, hence their name. Though it must be mentioned that their value isn’t actually fixed, any depreciation or appreciation in fiat carry over to them by nature.
You can mint coins on many different blockchains but, the Ethereum network has been most widely used for years.
Tether and USD Coin, two of the most important stablecoins on the market at the moment are USD Coin and USD Coin. While USDC has now overtaken USDT in the ETH network’s supply, USDT remains the most popular fiat token.
This chart shows the changes in supply over the last year for the top two Ethereum stablecoins.
USDC appears to have experienced strong growth during the second half. Source: Arcane Research Weekly Report - Week 2| Source: The Arcane Research Weekly Update - Week 2
The above graph shows that USD Coin just overtook Tether’s supply on Ethereum.
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Over the course of 2021, USDC’s supply grew three times faster than USDT’s. Decentralized finance (DeFi), has driven this coin’s growth.
In USDT’s case, the driver behind its growth has been centralized exchanges and institutions. This is why the graph for Tether’s supply shows it moving up in big steps; these organizations usually mint these coins in large bursts.
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On the other hand, USD Coin’s supply curve has a more natural growth to it because of crypto traders using it for DeFi.
As USDC’s growth is much more rapid than USDT, the report projects that USDC could surpass USDT and become the most stable coin overall in 2022.
At the time of writing, Ethereum’s price floats around $3.1k, down 3% in the last seven days. In the past month, crypto lost 20%.
Below is a chart showing the trends in the price for Ethereum over the past five days.
The price of Ethereum appears to have plummeted in the past few days. Source: ETHUSD on tradingView| Source: ETHUSD on TradingView
As has the majority of crypto markets, Ethereum has been consolidating for some time now. At the moment, it’s unclear when the coin may be able to escape from this sideways movement.
Unsplash.com's featured image. Charts by TradingView.com. Arcane Research: