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HomeCryptoCurrencyUSD Coin gains ground in stablecoin market as Tether cedes dominance

USD Coin gains ground in stablecoin market as Tether cedes dominance

Stablecoins, in general, are having an explosive 2021 with a USD Coin (USDC) that has doubled its offer, thus detracting from the dominance of Tether (USDT). This is stated by data provider Coin Metrics in its latest report on the state of the network.

The market capitalization of USDC surpassed USD 9 billion on the 28 February , compared to $ 8 billion six days earlier. In total, the stablecoin supply has exploded in two months, as highlighted by Coin Metrics in its 92nd report.

The rapid growth of USDC has been unfavorable for Tether, whose percentage of dominance It is at its lowest level to date. 70%, compared to 84.47% a year ago. Although, it continues to reflect a constant dominance, it has clearly been on the decline.

Beyond which of these dollar-anchored assets is dominating, the data provider’s report highlights the rapid growth of the stablecoin market, whose capitalization has increased to more than USD 50 billion. In the last two months it has added USD 20 billion to capital, taking taking into account that at the beginning of the years it registered USD 30 billion.

Coin Metrics stablecoin alza
The graph shows how the stablecoin market capitalization has grown with 8 of these assets pegged to the dollar. Source: Coin Metrics.

Stablecoins: a market booming

The momentum that stablecoins are taking is not This is a surprise for analysts at Coin Metrics, who observe that the use cases of these assets anchored to fiat currencies, such as the dollar, are increasingly visible.

Currently they are used in decentralized finance, as collateral or when users seek to protect themselves against the volatility of the cryptocurrency market. In addition, they are used to move money around the world and to exchange between bitcoin, ethers, as well as countless other crypto assets.

Another sign of how the stablecoin market is growing is the rise of the stablecoins. active addresses. According to Coin Metrics, this is an indication of the high activity that users maintain. For most of February, for example, there were on average more than 300,000 unique active addresses per day. That month, specifically February 18, there was so much activity that a new all-time high was recorded with a total of 400,000 active addresses.

direcciones activas febrero alza
In February the stablecoin market reached the all-time high of 400,000 addresses active in one day. Source: CoinMetrics.

In any case, the stablecoin market continues to gain momentum, even though 7 out of 10 people have never heard of them, such as It was reported by CriptoNoticias recently. A survey determined that more than 75% of those consulted are not familiar with stablecoins, despite knowing about cryptocurrencies.

Although stablecoins appeared on the scene as an answer to offer protection against these price changes, they do not seem to be attracting as much attention as the more “traditional” cryptocurrencies, according to the study by Wirex and the Stellar Foundation.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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