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The supply of USDC on the Ethereum blockchain has surpassed that of USDT

The quantity of USDC on the Ethereum blockchain has surpassed that of USDT, the most popular USD-pegged stablecoin.

The USDC is gaining traction

According to a recent analysis by The Block, the USDC stablecoin’s total supply on the Ethereum network has for the first time surpassed that of USDT.

On the Ethereum network, the total supply of the USDC stablecoin is currently 39.92 billion, whereas the total supply of the USDT stablecoin is 39.82 billion.

USDC currently has a larger supply on the Ethereum blockchain than USDT is a huge achievement for the former, as USDT has traditionally dominated the crypto markets.

While USDC has been around for a while, it has spent most of its existence as the second-largest stablecoin in terms of market capitalization after Tether.

The quick rise of USDC in the decentralized finance (DeFi) ecosystem is one aspect that can be blamed for USDC overtaking USDT on the Ethereum network.

Stablecoins, for the uninitiated, are responsible for the majority of token transactions on DeFi protocols like Curve, Uniswap, Sushi, and others.

A Circle spokesman told The Block that whether digital asset markets are trending up or down, both conditions tend to enhance demand for USDC, particularly during big market changes.

The demand for USDC, according to the spokeswoman, is mostly determined by market movement.

For example, when markets rise, new investors change their fiat holdings into stablecoins like USDC to transfer their funds to crypto trading platforms. When markets fall, on the other hand, investors like to hedge their bets by changing their crypto holdings to stablecoins like USDC.

Tether CTO Paolo Ardoino told The Block that USDT is unlike its competitors in that its demand is mostly driven by centralized exchanges like Coinbase, Kraken, Binance, and others.

Other stablecoins, like DAI and UST, on the other hand, rely heavily on DeFi platforms to grow their supply, according to Ardoino.

USDC Extends its Reach to Other Chains

While the overall quantity of USDC on Ethereum is more than USDT, when all blockchains are considered, the latter still reigns supreme.

USDC is now available on several of the most popular smart contract platforms, including Tron, Hedera Hashgraph, Avalanche, and others.

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