A triumph for USDC? While Tether’s (USDT) hegemony was until recently under little threat, Circle’s stablecoin is now a serious contender. Its capitalization is currently over $50 billion.
$50 billion capitalization for the USDC
According to data from CoinGecko, the USDC’s capitalization now places it as the 5th largest cryptocurrency at the moment. It is now only two places behind Tether’s USDT, which has a market cap of $78 billion.
50 BILLION USDC (w/ thread below) pic.twitter.com/5FEaPmXjup
– Jeremy Allaire (@jerallaire) February 1, 2022
For the past two weeks, the USDC has even surpassed the USDT on the Ethereum blockchain. Circle’s stablecoin has gained $10 billion over the period: the USDC’s capitalization was just over $40 billion on January 16.
The USDC explosion
The USDC’s capitalization has grown by 10,000% over the past two years. According to Jeremy Allaire, Circle’s CEO, the entire ecosystem has grown in a short period of time. In the year 2021, stablecoin enabled $2.5 trillion in transactions. Over the same period, 4.6 million active addresses used the cryptocurrency.
The USDC’s breakthrough is particularly notable against a USDT that remained very dominant until then. Tether is still installed at the 3rd place of the most capitalised cryptocurrencies, but it now has several serious competitors.
We also note that all stablecoins have exploded this year:
Evolution of stablecoin supply (Source: The Block)
USDC is among the fastest movers, however, with a market cap that has taken +987% in 2021. Circle’s stablecoin is getting closer to the USDT by the day: will it surpass it soon? It’s now a possibility
