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DeFi Stablecoins DAI, USDC Boost Trading Volume in Q3

USDC and Dai reported higher trading volume on DeFi in Q3. Moreover, there was a 120% growth in stablecoin supply, expanding from $10 billion as of May to over $22 billion as of writing.

USDC doubled its market-share by growing from 10.7% to over 22%, at press time. Meanwhile, DAI seems to have done reasonably well. It grew over four times in market-share on volume moved by evolving from 4% in Q1 to over 17%. Contrary, the USDT volume shrunk by 20% between Q2 and Q3 from 75% in Q2 to 55% in Q3.

September of this year alone saw more money move on-chain than the entirety of the first quarter. In Q3, higher volumes were consistently seen every month with $428 billion moved on-chain.

Source: State of Stablecoins - Q3 2020
Source: State of Stablecoins – Q3 2020

A growing DeFi ecosystem is part of the reason for the renewed interest in stablecoins. The ability to receive returns on a non-volatile asset (like USDC, DAI) is believed to have fueled growth in stablecoins.

In 2019 and early 2020, Tether’s transaction volume was approximately equal to 67% of the total stablecoin market. However, with the advent of DeFi, the transaction volume of DAI and USDC has grown significantly.

Since the DAI token shows a higher generation rate, network users began to show increased interest in it. This explains the rapid growth and expansion of the scope of tokens.

USDC has primarily focused on application-specific use cases such as remittance and institutions looking to have a token-based transfer mechanism. DAI, on the other hand, is mainly a community-driven experiment. It has been successful at acquiring similar market shares without the regulatory blessings USDC holds today.

Chloe Demir

A devoted news specialist who is passionate about the blockchain and crypto industry. She writes news and feature articles based on the latest developments in the market. She is always updated and on the go.

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