Stablecoin Shakeup: USD Coin Overtakes Tether on Ethereum
20 Gennaio 2022 - 08:00PM
NEWSBTC
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
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