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.
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.