Prominent stablecoin USDC total supply on the Ethereum blockchain has surpassed rival Tether (USDT) for the first time.
Supply USDC growth to outperform USDT on Ethereum is significant as the Ethereum blockchain continues to be a key growth factor for stablecoins, with both USDC and USDT available on several blockchains, including Solana and Algorand.
DeFi and other factors as a growth driver
One of the main reasons for USDC’s recent growth is its increased usage in Decentralized Financial Markets (DeFi), where stablecoins are frequently used for trading in cryptocurrency. decentralized exchanges and used for various purposes Within the DeFi protocol
A Circle spokesperson said: “While the trend of the digital asset market, whether it is up or down, But both scenarios are likely to create more demand for USDC, especially during major market movements,” the spokesperson said.
when the market moves up The growing interest from investors has increased the demand for USDC to bring fiat currencies to the crypto trading platform. when the market is down More traders will also sell volatile assets to stablecoin such as USDC, the spokesperson said.
Meanwhile, USDT demand is largely driven by users and centralized exchanges, said Tether CTO Paolo Ardoino.
But with the deteriorating sentiment in the crypto market, institutional demand for USDT has also declined, Ardoino added, adding that demand from individual investors is also increasing from Turkey and several Latin American countries.
On the whole, the total supply of USDT on the blockchain is still higher than that of USDC at above $82 billion and USDC at around $45 billion.
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