USDC Stablecoin Erodes The Dominance Of Tether’s USDT: Analysis

The USDC stablecoin erodes the dominance of Tether’s USDT with the 50 billion USDC circulating increased the Circle share of the stablecoin market to about 30% as we are reading further in our latest USD Coin news.

The world’s second-biggest stablecoin by market cap is growing and now the USDC stablecoin erodes the dominance of Tether. The stablecoin landscape is a shifting dynamic but one trend became clear over the past year with Tether’s dominance diminishing. Circle, on the other hand, reached a milestone of 50 billion USDC in circulation as explained by the co-founder and CEO Jeremy Allaire.

50 BILLION USDC (w/ thread below) pic.twitter.com/5FEaPmXjup

— Jeremy Allaire (@jerallaire) February 1, 2022

Allaire said that while this is a huge number, it is a huge growth and the ecosystem around it tells a broader story and added that USDC has seen 10,000% growth over the past two years. The total stablecoin supply now stands at $177 billion or around 9.7% of the total crypto market caps. Tether commands about 45% of the total whereas Circle is taking the 29% share as the gap between closes up. For reference, this time last year, TEtehr had a dominance of 74% with circle taking about 16%.

Circle’s stablecoin market cap ballooned by 987% in 2021 and Tether’s supply saw less than a third of the growth with 275% in the same period. According to the circle CEO, the stablecoin network saw $2.5 trillion in on-chain tranactions with 4.6 million wallet addresses in 2021. USDC runs on eight different blockchains and it is supported by 200 protocols and can be traded in 180 countries on 34 exchanges Tether is still the dominant force in the ecosystem, but the Goldman Sachs-backed digital payment company Circle is fast approaching.

USDC’s supply already flipped USDT on the ETH network. Tether’s supply is split between Tron and ETH with about 36 billion and 39 billion USDT on each network and the rest on a handful of others like Solana. Circle even announced that it had expanded its multi-chain ecosystem by adding more support for the Flow network.

As recently reported, USDC surpassed Tether in terms of total supply on the Ethereum network which means there are more coins on Ethereum than there are on Tether. The total supply of USDC on Ethereum is more than that of its long-time rival Tether. According to Etherscan, USDC has a supply of $40.5 billion while the USDT current total supply now stands at $39.8 billion on the ethereum blockchain. In terms of transfers, Tether seems to be the winner, however. The statistics show that Tether saw a total transfer volume of 136.7 milion while the USD Coin saw a  little over 33 million which only shows that ERC20 USDT has been more transacted than the ERC20 USDC.