Victor Ugochukwu · Dec 14, 2020 . 5min read
USDC Supply almost doubled since August, staked in Pools across DeFi Protocols
It took USDC almost 2 years to hit $1 billion in market cap but within 60 days, the stablecoin doubled in market capitalization.
By Victor Ugochukwu · Sep 17, 2020 . 5min read
USDC supply doubles since August solidifying its position as the second most capitalized stablecoin after Tether. Circle launched the stablecoin in May 2018 in partnership with Coinbase and just less than two years, USDC’s market cap has grown to $2.07 billion.
Coin Metrics, a Blockchain and Crypto data analytic firm in its weekly report shares insights on how USDC is growing. In its latest weekly State of the Network Issue, Coin Metrics shares that it took USDC almost two years to hit $1 billion in market cap but within 60 days, the stablecoin doubled in market capitalization. A look at the USDC chart shows how this growth explosion happened within the DeFi Summer.
A key driver to this is the fact that USDC is staked in liquidity pools across most of the significant DeFi protocols. Aave, Maker and Compound allow staking USDC. Perhaps the most notable is the likes of SushiSwap, Curve and Uniswap, all of which has crossed the $1 billion Total Value Locked (TVL) at one point or the other.
On the other hand, Tether has also seen increased growth and adoption this year, even among DeFi protocols. Although at present Tether is the most capitalized stablecoin USDC is setting the stage to be a significant contender. Tether’s market cap hit $14 billion and looking set to surpass that at according to recent data. However, according to data from Coin Metrics, when you compare both Tether and USDC growth, the latter’s metrics looks interesting. For instance, the growth chart from March till date showing how USDC supply doubled depicts this.
As USDC circulating supply doubles, its median transaction value also keeps rising.
Also, although Tether’s share of the total stablecoin supply peaked at about 87% on August 10th, it has dropped to 83% its lowest level since April. Interestingly, USDC’s median transfer value has picked up nicely and leaves most of its competitors like USDT-ETH, PAX and Dai behind.
Lastly, Circle recently implemented gasless transfers for USDC to reduce the impact of gas costs and also launched on Algorand. The DeFi boom has helped to push the innovative spirit of players in the space to roll out needed products. USDC has a prominent role to play even as the industry shows prepares for more growth.
Follow Cryptodose for daily updates.