It’s relevant since both stablecoins – which run on other blockchains – have their largest percentage of supply on Ethereum.
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Stable currency currency is a medium of exchange that defines value. USD Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (USDC) has reached an important milestone by beating its rival for the first time.Tether (USDT) in terms of on-grid supply Ethereum a decentralized open-source blockchain with smart contracts functionality. .
The total supply of USDC in Ethereum es de 40.6 billion de tokens USDT, just ahead of USDT, whose supply on the same blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. is 39.8 million tokens according to data fromEtherscan.
USDC overtakes USDT on Ethereum
USDC’s milestone is significant, as its main competitor,Tetherhas remained the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. centralizada vinculada al dólar estadounidense más popular del mercado, al menos durante los últimos 6 años. USDC, que surgió en 2018, ha logrado conquistar una porción del mercado en los últimos 3 años, posicionándose como un competidor más transparente y regulado que USDT.
It is also important because the network a network refers to all nodes in the operation of a blockchain at any given moment in time. Ethereum is the leading blockchain and the largest contributor of growth for both stable coins. Both USDC and USDT, which run on other blockchains, have their highest percentage of supply on Ethereum according to data fromThe Block Crypto Data .
Tether has a significant supply in the network Tron of 38.7 billion, very close refers to the closing price; similar to the same term used in stock trading. to the Ethereum according to the current data . The stablecoin is also available in more than a dozen blockchains , incluyendo Binance Smart Chain , Solana , Avalanche y Polygon . As for its rival, USDC, it is also in other chains, such as Solana yAlgorandbut the majority of its supply is based on Ethereum .
It is worth noting that even though USDC has outperformed USDT in terms of supply over the last two years, USDT has not been able to keep up with USDC in terms of supply. Ethereum The total circulating supply of the latter is higher.Tether also dominates in terms of total market capitalization, which currently stands at USD $78 billion, compared to USDC’s USD $45 billion.
Bitcoin’s fall could be playing in USDC’s favor
The reasons behind USDC’s recent growth are unclear, it could be determined by several factors; among them, the momentum and recent popularity of the decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance (DeFi) space, a market that relies extensively on the stablecoins . Stable currencies are used for various purposes at DeFi, including for trading on decentralized exchanges (DEX).
On the other hand, the massive price pullback seen in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market over the past few weeks could also be a determining factor. At least that is the opinion of Circle the issuing company of USD Coin . “ Significant recent market an area or arena, online or offline, in which commercial dealings are conducted. movements also boosted USDC’s growth. “ a spokesperson for the company toldThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain..
As digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset markets trend up or down, both scenarios tend to generate increased demand for USDC, especially during significant market moves.
Major cryptocurrencies have experienced a significant price pullback in recent weeks. The plunge has seen Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. falling back from a high near USD $70,000 in November to USD $40,000. Other assets such as Ethereum have also recorded a double-digit percentage drop since November, amid a broad-based downtrend.
The spokesman for Circle says that in the past they have seen aggressive market movements lead to higher demand in USDC. When the prices of cryptoassets such as Bitcoin interest in the use of the stablecoin because investors use it as a way to trade cryptocurrencies and enter the market. Conversely, when the market goes down, traders sell volatile assets and take refuge in stable currencies.
Controversy surroundingTether benefits its rivals
The controversy surroundingTether could also be a factor that is benefiting competitors such as USDC. Community doubts and concerns about the company’s reserves have led to bad publicity for USDT. In the past, many have criticizedTether for its lack of transparency about the state of its dollar reserves.
Otros asuntos, como el poder centralizado de la empresa también ha sido un elemento desfavorables para la imagen de USDT. Tether has been blocking addresses with large amounts of funds in recent weeks. At the end of 2021, the company blocked an address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. of Ethereum with more than a million dollars in USDT. More recently he did the same with other three addresses that held more than USD $150 million in the stablecoin . (The action disables the holders from mobilizing such funds).
In none of the most recent cases has the company reported on the reasons why it has decided to blacklist the addresses. Although this type of action is taken in cases of suspected illegal activity, as well as when a criminal investigation is being carried out, it does not cease to cause concern to some users in the community.
Beyond USDC, which is also a centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. project with the ability to block addresses, such a move could fuel the growth of centralized stablecoins. In recent weeks, the algorithmic stablecoin from Terra UST, which is a decentralized option, has shown remarkable growth. In December it became the first stable currency of its kind to surpass a market capitalization of USD $10 billion The figure currently stands at over $27 billion.
- US banks form consortium to offer their own stablecoin: USDF
- VeChain Foundation announces it will launch a new stablecoin known as VeUSD
- Circle backs possible regulation of U.S.-based stablecoin issuers
Sources:The Block , Cointelegraph , archivo
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
