Messari says USDC will soon become the dominant stablecoin on Ethereum, ahead of USDT

Mastercard to test USDC stablecoin within its payment system

An analysis by Messari shows the rise of stablecoins, whose capitalization continues to grow strongly. Among these, the USD Coin (USDC) has made a notable breakthrough: it is expected to become the dominant stablecoin on Ethereum soon.

The breakthrough of stablecoins in 2021

Messari in a recent research report on decentralized finance markets highlighted the growing influence of stablecoins in the crypto market. The report stated that the market capitalization of stablecoins has reached $107 billion for the first time. 

This corresponds to a growth of 70% since January and 803% in the past 12 months. In the past quarter, stablecoins have facilitated transaction volumes that exceed $1.7 trillion. This corresponds to an increase of 1,090% yearly. 

Messari cites several reasons for this craze for stablecoins: ease of use, constant availability, and interoperability with many services. 

The analysis also mentions their programmability, which makes them particularly useful in the decentralized finance sector.

USDC now rivals USDT on Ethereum

The analysis also revealed that three stablecoins, in particular, performed well in Q2 2021. USDC, BUSD, and DAI, which have gained a significant chunk of the market share and reducing the influence of leading stablecoin Tether (USDT).

Even more notably, the USDC is emerging as a major stablecoin in the decentralized finance industry, particularly on Ethereum. As a result, the supply of USDC on Ethereum should soon exceed that of the USDT:

Still, according to Messari, half of USDC is now used on smart contracts, which primarily work on Ethereum:

“More than 50% of the USDC supply is now locked in smart contracts – the equivalent of $ 12.5 billion. Although this percentage will not be as high as for DAI, USDC leads widely in terms of quantity of dollars”. The report noted

Circle in great shape

Circle Company, which issues the USDC stablecoin, has also shown great shape in recent months. The company managed to raise $440 million in funding in May. It subsequently announced in early July its intention to go public under the ticker CRCL. 

While USDC has long lived in the shadow of USDT, today, it has managed to find a place for itself. At the end of 2020, a partnership with Visa had initiated this upward trend. Tether remains the leading stablecoin but no longer has the hegemonic status it had a short time ago. 

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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