Messari Report: USDC Is The Most Dominant Ethereum-Backed Stablecoin

The growth of USDC in 2021 is more tremendous than that of Tether. The Ethereum-based USDC stablecoin is gaining immense traction as the experts deem it as the most dominant asset.

In coming weeks it is very likely USDT’s share of the stablecoin supply on Ethereum will fall below 50% for the first time.

USDC is quickly emerging as the dominant stablecoin on Ethereum in large part due to its growing role in DeFi.

1/ pic.twitter.com/LklIUagMWj

— Ryan Watkins (@RyanWatkins_) June 29, 2021

According to the analytics research, there is now an increase in the demand for USDC due to abrupt popularity in the DeFi ecosystem. Such demand has positioned USD VeChain Announces The World’s First National eNFT Adoption, Why It Could Be Huge for VET

More so, Watkins further acknowledges:

“Although this percentage is not as high as DAI, USDC leads by a wide margin in dollar terms and has become the preferred stablecoin in DeFi for now.”

This makes it the most preferred digital asset for staking in DeFi protocols’ smart contracts.

He said that even though USDC’s percentage is still low compared to DAI, it’s ahead with a wide margin in terms of the dollar. This pushes USDC to emerge in the DeFi sector as the preferred stablecoin.

From its 1.3 billion circulating supply, USD

“We anticipate that in the coming months USDC will become available on Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron.”

Related Reading | TA: Ethereum Remains Strong, Why ETH Could Rally Above $2.3K

According to a researcher, the largest USDC consumers are DeFi lending protocols such as MakerDAO, Aave, and Compound. Their holding is about 23% of the total USD Circle.

The Circle protocol is a new platform that promotes decentralized finance operations for businesses.

Recall that Clinbase, a U.S. crypto exchange, promised 4% interest on USDC holdings earlier this week. Their action was a spark to the stablecoin.

As the USDC stablecoin's significance grows, the bulls are keeping its price intact  | Source: USDCUSD on TradingView.com

While the bears keep the entire DeFi market in the red zone, the USD Source: https://www.newsbtc.com/news/defi/messari-usdc-most-dominant-ethereum-stablecoin/