Stablecoin Demand Surges as USDC Supply Surpasses $3Bn, Tether Closes on $20Bn

Martin Young
December 9, 2020 Updated May 14, 2024
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The demand for digital dollars is soaring and the second-largest stablecoin in the crypto ecosystem has just reached a new circulation milestone.

The Centre Consortium’s USD Coin has just surpassed 3 billion in circulation, growing by nearly 500% in 2020 according to a blog post today. The founding members of the consortium are Circle and Coinbase and their USDC stablecoin is shaping up to rival the industry standard Bitfinex dollar pegged coin, Tether.

The blog post added that since launching in 2018, USDC has supported more than $230 billion in on-chain transactions, spanning diverse industries and use cases. The most recent of which has been in the decentralized finance sector where the asset is often used as a pair for liquidity pools.

Total value locked in DeFi protocols recently reached an all-time high of just below $15 billion which is an increase of over 2000% this year alone.

David Puth, Centre CEO, commented;

“The accelerated growth of USDC over the course of this year is the result of our active work to establish an open standard for fiat digital currency on the internet,”

He added that he fully expects that the adoption of USDC will continue to expand globally and that growth will continue at a very strong pace. According to Coingecko, USDC is now the thirteenth largest crypto asset in terms of market capitalization, just behind Bitcoin SV.

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Tether Supply Surges

USDC, which recently partnered with Visa, is not the only stablecoin experiencing monumental growth in 2020. The industry standard, Tether, has also hit a record high in terms of supply which is just shy of $20 billion.

According to the Tether Transparency report, there are $19.88 billion USDT in circulation, an increase of 360% so far this year. Of that total, 62% or $12.4 billion is currently on the ERC-20 token standard running on the Ethereum network.

$1.33 billion is on Bitcoin’s Omni network while $6.3 billion USDT is operating on the Tron network. There are smaller amounts on the EOS, Liquid, SLP, and OMG networks.

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Digital Dollars in Demand

USDT and USDC are the two largest stablecoins by market capitalization but others are also surging in terms of supply. MakerDAO’s Dai stablecoin has also hit an all-time high of just over $1 billion this week, an increase of over 2300% since the beginning of 2020.

Binance’s stablecoin BUSD is the fourth largest with a market cap of $670 million, while Paxos is down in fifth with $390 million.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.