A report from Glassnode at the beginning of this month shows that there has been an increase in the quantity of Circle (USDC) on exchanges.
The report found out that the number of USDC available on various exchanges doubled just this year alone, from USD431 million to over USD915 million.
Major Signals
- The USDC quantity available on exchanges saw a twofold increase just this year alone, from USD431 million to over USD915 million.
- Close to USD500Million in USDC is making its way into these exchanges in a month.
- The growth by USDT's rival stable coins has pushed its dominance below 75% for the very first time ever.
What Circle is doing...
In an unexpected move, stablecoin Circle (USDC) seems to be eating into control of the stablecoin market as it is steadily and rapidly edging out Tether (USDT). An estimated amount of USD1 billion in new USDC has been minted and disbursed to exchanges in 2021 alone.
Blockchain data company Glassnode revealed in the report that close to USD 500Million in USDC is pouring into these exchanges in a month. There is some theory by the data company that a large amount of stablecoin is being acquired by traders planning to buy up future crypto dips.
The stock of USDC has increased from USD half a billion to over USD five billion, a growth of over 900% from the onset of 2020. This year's growth is believed to be a result of a stablecoin-to-fiat bridge introduced by the token's parent company, Circle. The bridge was initiated to enable smooth & efficient transfer from USDC to USD.
Still in Stablecoin Territory…
MakerDAO’s Dai, the third-largest stablecoin according to circulation, has seen a growth in the capitalization rate up to an extraordinary 3,800%. In January 2020, it's cap. stood at USD40 million, but currently, it stands at over USD1.6 billion. Even BUSD, Binance's stablecoin, saw a growth increase of over 600%, its capitalization now stands at USD1.4 billion.
Meanwhile Tether…
During the same period, the quantity of Tether in circulation increased by about 500%. But in capitalization, Tether surpasses that of Circle, its recent increase in the market cap being about four times that of the USDC/USD growth over the past 13 months.
Tether's rival stable coins have pushed its dominance below 75% for the first time.
Tether also has a lawsuit with the Attorney General of New York, which could have discouraged traders from trading with it.
Other factors include the new stable act and its drop in Price on 5th Jan.
