Those who believe in Bitcoin also believe in intelligence.
11

Stablecoin Shakeup: USD Coin Overtakes Tether on Ethereum

The stablecoin market has undergone a shakeup as USD Coin (USDC) has overtaken USD Tether (USDT) on the Ethereum blockchain.

USD Coin Supply On Ethereum Is Now More Than Tether

As per the latest weekly report from Arcane Research, USDC has now become the largest stablecoin on the 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.

These coins can be minted on many blockchains, but the Ethereum chain has been the most popular option for it since years now.

Tether and USD Coin are two of the biggest stablecoins in the market right now. And while USDC supply has overtaken USDT on the ETH network, USDT is still the largest fiat token overall,

Here is a chart that shows how the supply of the two biggest stablecoins on Ethereum has changed over the past year:

Looks like USDC has enjoyed sharp growth in the second half of the year | Source: The Arcane Research Weekly Update – Week 2

As you can see in the above graph, USD Coin has just surpassed the supply of Tether on the Ethereum blockchain.

Related Reading | Solo Ethereum Miner Hits The Jackpot With 170 ETH For Mining A Block

Over the course of 2021, USDC’s supply grew three times faster than USDT’s. Decentralized Finance (DeFi) has been the main push behind this growth of the coin.

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.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

On the other hand, USD Coin’s supply curve has a more natural growth to it because of crypto traders using it for DeFi.

The report predicts that USDC will surpass USDT to become the biggest stablecoin overall in 2022 as its growth has been much faster recently.

ETH Price

At the time of writing, Ethereum’s price floats around $3.1k, down 3% in the last seven days. Over the past month, the crypto has lost 20% in value.

The below chart shows the trend in the price of ETH over the last five days.

ETH’s price seems to have plunged in the last few days | Source: ETHUSD on TradingView

Ethereum has been in consolidation for a while now, as has been most of the crypto market. At the moment, it’s unclear when the coin may be able to escape from this sideways movement.

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Source link

Related Posts

Leave a Reply

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Please install and activate the "Newsletter" plugin to show the form.

Hot Posts

11
SPDGAME COIN (SPDC) Listed on http://Azbit.com!
12 April 2022By
11
Quantum Music to Leverage ARPA’s RNG Technology to Tap into Web 3.0
8 March 2022By
11
Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend
8 March 2022By

Video Posts

11In
MASSIVE UPDATE TO ALL CRYPTO HOLDERS!!!! TECHNICAL ANALYSIS#DOGECOIN #ETHEREUM #SHIBAINU
20 May 20220
11In
DOGECOIN $3 VERY SOON!? OMG! BUY NOW!!!!? #DOGECOIN #DOGECOINS #DOGE
19 May 20220

Recent Commens

Explore Cryptocurrency Regulation in South Korea
[…] South Korean regulator proposes new strict rules for token issuers. The FSC wants to...
Amin Dupont
Before I started at Sorare I would have not considered it gambling. As these are...
sophia linnea
Hi Guys Your blog well describes about what solana is and the progress of NFT...