According to Messari analysts, in 2021 USDC demand on Ethereum grew much faster than USDT. Due to its popularity in DeFi, USDC could become the dominant stablecoin on Ethereum.
Messari’s research showed that the demand for USD Coin has grown so much that stablecoin has managed to absorb a significant portion of the market share of its competitor Tether. Messari researcher Ryan Watkins predicted that this could cause Tether’s share of Ethereum stablecoins to fall below 50% in the coming weeks.
He added that more than half of the total USDC supply is now in smart contracts, which is the equivalent of roughly $ 12.5 billion. Citing CoinMetrics data, Messari estimates that over 40% of the stablecoins in circulation on Ethereum are in USDC.
“Although this percentage is not as high as DAI, the USDC is leading by a wide margin in dollar terms and has already become the preferred stablecoin in DeFi.”
USDC supply has grown almost 20 times since early 2021, when there were $ 1.3 billion tokens in circulation. According to Circle, the current stablecoin market capitalization is in excess of $ 25 billion. According to Messari, DeFi lending protocols MakerDAO, Compound and Aave are the largest users of USDC. which account for about 23% of the total volume of tokens.
The USDC stablecoin is currently available on four blockchains, but the developers plan to add support for four to six more networks soon.
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