USDC Supply Reaches $5 Billion as Tether Dominance Drops below 80%

A recent stats report by Coin Metrics, shows USD Coin (USDC) supply reaching US $5 Billion, rising from just 500 Million since last year.

About USD Coin

USD Coin (known by its ticker USDC) is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis. Every unit of this cryptocurrency in circulation is backed up by $1 that is held in reserve, in a mix of cash and short-term U.S. Treasury bonds. The Centre consortium, which is behind this asset, says USDC is issued by regulated financial institutions.

In 2020, Circle and Coinbase collectively announced a major upgrade to USDC’s protocol and smart contract. The goal of these enhancements is to make it easier for USD Coin to be used for everyday payments, commerce and peer-to-peer transactions.

Tether Dominance Drops below 80%

As a result on USDC growth, Tether’s share of total stablecoin supply is decreasing. Although Tether is still by far the most dominant stablecoin, it’s down to only about 75% of the total market. This is its lowest share of total supply since January 2019.

USDC Coin Price Flatlines

Also we noticed that the USDC coin price has stabilised around the US $1 mark (which is the price it represents). This may lead to it being used instead of USDT by traders as they come in and out of BTC and other coins.

You can find more news about Stablecoins here.