USDC May Overtake USDT As Stablecoin Supply Crosses $180B: Arcane
- The overall stablecoin supply touched $184 billion today
- The growth rate of Stablecoins is faster than the rest of the market: Arcane Research
- USDC could potentially overtake USDT by June end as the latter has grown by only 1% in two months
As the rest of the market is slowly gaining traction, possibly heading towards a recovery, stablecoins have already marked another milestone in its growth.
Data from Arcan Research’s report and Cryptorank shows how some top stablecoins are at threat of being outstripped.
Stablecoin for the Win?
It seems like it since, as per the research report from Arcane Research, stablecoins are witnessing a much quicker growth rate than cryptocurrencies.
Within 16 months, the total supply of all stablecoins has risen from about $20 billion to $184 billion today.
And at the top of them, all sits USDT crowned as the biggest stablecoin in the market. In fact, not only is it the biggest stablecoin, but it is also the third biggest cryptocurrency in the world.
Recently, FXEmpire reported on Tether’s growth, as its assets and reserves exceeded its liabilities by a margin of $140 million.
At the moment, Tether (USDT) holds the most dominant over the market, making up 44% of the market share. Following it is the USD Coin (USDC), with a 29% market share, and right behind it is the biggest cryptocurrency exchange’s stablecoin Binance USD (BUSD), with a 20% market share.
However, this could soon change given the difference in the growth rate, particularly when it comes to USDT and USDC. While having the highest supply, the former also has the lowest growth rate.
Since September 2021, USDT has only grown by just 14%, and this year that rate has come down to just 1%.
On the other hand, USDC is sprinting when it comes to a rise in supply and is continuing to do so. Arcane Research stated:
“In our end-of-year report, we projected that USDC will overtake USDT’s position as the biggest stablecoin in 2022. If USDC and USDT continue growing at similar rates as so far in 2022, USDC will become the largest stablecoin by market cap at the end of June.”
The “Other” Ones
However, these stablecoins in the community are a concern regarding their non-collateral, algorithmic backing.
Regardless both the stablecoins combined have a supply of just $22 billion, which is far from being a threat to USDT and USDC.