17 Jan 2022
The supply of USDC has surpassed USDT on EthereumUSDC grew three times faster than USDT in 2021 and has become the largest stablecoin issued on Ethereum.
USDC grew three times faster than USDT in 2021 and has become the largest stablecoin issued on Ethereum. The two biggest stablecoins are USDT and USDC. USDT has been somewhat stagnant since May, while the supply of USDC has grown rapidly. Stablecoins can be issued on several blockchains. Ethereum has for several years been the most popular blockchain for issuing stablecoins. USDC has surpassed USDT on Ethereum, but USDT is still the biggest stablecoin across all blockchains. While DeFi has been the big driver for USDC's growth, USDT's growth is mainly fueled by centralized exchanges and institutions. As you can see from the chart, the supply of USDT tends to grow in big bursts when big institutions decide to mint the stablecoin, while USDC's supply tends to increase more organically as crypto traders use it in DeFi. Another driver for USDC's growth is that it can be issued and redeemed by several companies that are part of a network, while only Tether can issue USDT. USDC’s supply is growing much faster than USDT, making it likely that USDC will grow to become the biggest stablecoin across all blockchains in 2022.