- The amount of USDC on exchanges increased by over 112%.
- Third-largest stablecoin Dai has also grown in capitalization by 3,800%.
- Meanwhile, USDT dominance in the stablecoin category dropped below 75%.
USDC Spiked Over 112% While USDT Dominance Dropped
USD Coin (USDC) is a stablecoin pegged to the US dollar on the Ethereum blockchain. Despite having a slow growth since 2018, the number of USDC on exchanges has started to increase rapidly as of 2021. Consequently, this trend brings more buying power to the crypto market.
According to Glassnode, the amount of USDC spiked by over 112% in January alone, growing from $431 million to over $915 million. This indicates almost $1 billion worth of purchasing power from USDC alone.
Third-largest stablecoin MakerDAO’s Dai has also grown in capitalization by 3,800%. It went from $40 million in January 2020 to more than $1.6 billion today. Binance’s stablecoin, BUSD, also saw huge growth with a 600% spike in supply over the same period.
Like USDC, USDT is closely associated with exchanges. In addition, Tether has an eye-popping $25 billion market capitalization, making it the top stablecoin. However, USDT’s recent stablecoin dominance has fallen below 75% for the first time, as per data from Coin Metrics.
Furthermore, Tether has lost its peg many times in recent history, dropping down to $0.96 in October 2018 and again on January 5, 2021. USDT’s all-time low is $0.89, set on March 13, 2020. According to CoinGecko, the USDT price is at $0.99, at the time of writing.