USD Coin (USDC) has positioned itself as the dominant stablecoin, ahead of Tether (USDT), according to research and analytics company Messari.
According to the company’s new report, USDC has pulled ahead thanks to its involvement in decentralized finance (DeFi) projects.
Based on Messari's findings, USDC's growth has directly bitten into USDT territory, taking market share from Tether.
Messari researcher Ryan Watkins estimates this trend could lead to USDT's supply dropping below 50%.
Meanwhile, more than 50% of USDC's supply is now locked in smart contracts. The total amount locked in such contracts is estimated at $12.5bn.
Furthermore, CoinMetrics data suggests that more than 40% of the stablecoin supply accounted for on the Ethereum blockchain is now represented by USDC. That is still below DAI, but USDC has a clearly strong position in the ecosystem.
“Although this percentage is not as high as DAI, USDC leads by a wide margin in dollar terms and has become the preferred stablecoin in DeFi for now”, Watkins explained.
USDC supply has increased by more than 1,820% since the beginning of 2021, coinciding with a wider bullish market for crypto.
Meanwhile, Tether has reported that there are 62.7 billion USDT currently in circulation, an uptick of 200% since the beginning of the year. If you are interested in cryptocurrencies, you may want to use them recreationally.