{"id":168559,"date":"2021-02-02T06:36:17","date_gmt":"2021-02-02T03:36:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/usdc-on-exchanges-doubled-in-january-while-tethers-dominance-fell-to-new-lows\/"},"modified":"2021-02-02T06:36:17","modified_gmt":"2021-02-02T03:36:17","slug":"usdc-on-exchanges-doubled-in-january-while-tethers-dominance-fell-to-new-lows","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/usdc-on-exchanges-doubled-in-january-while-tethers-dominance-fell-to-new-lows\/","title":{"rendered":"# USDC on exchanges doubled in January while Tether’s dominance fell to new lows"},"content":{"rendered":"

“# USDC on exchanges doubled in January while Tether’s dominance fell to new lows <\/strong>”<\/p>\n

The sands are shifting in the stablecoin ecosystem, with Circle\u2019s USD Coin quickly eating into the dominance of the sector\u2019s leader, Tether.<\/p>\n

According to a Feb. 1 report<\/a> from Glassnode, the amount of USDC on exchanges increased by more than 112% in January alone, growing from $431 million to over $915 million. <\/p>\n

Since the beginning of the year, roughly $1 billion worth of new USDC has been minted \u2014 of which more than 90% has been sent to centralized exchanges. <\/p>\n

With nearly half a billion worth of USDC making its way onto exchanges in a single month, Glassnode speculates that traders are planning to mobilize the tokens to buy up any forthcoming dips in the crypto markets:<\/p>\n

\u201cThis high figure should increase investors’ confidence in any dips being quickly bought up, making it a bullish signal.\u201d<\/p><\/blockquote>\n

USDC\u2019s January growth may have been bolstered by Circle introducing a stablecoin-to-fiat bridge to enable seamless transfers from USDC to USD last month.<\/p>\n

Since the beginning of 2020, the supply of Circle\u2019s stablecoin has surged by over 900% from just over 500 million to 5.1 billion according to company stats<\/a>.<\/p>\n

By contrast, the amount of Tether in circulation has increased by around 500% over the same period. However, Tether\u2019s recent increase in capitalization represents more than four-times the fiat-value of USDC\u2019s growth over the past 13 months.<\/p>\n

The third-largest stablecoin by circulation is MakerDAO\u2019s Dai, which has grown in capitalization by a whopping 3,800% from just $40 million in January 2020 to more than $1.6 billion today. Binance\u2019s stablecoin, BUSD, also saw significant growth with a 600% increase in supply over the same period to currently boast a $1.4 billion capitalization. <\/p>\n

With rival stablecoins outpacing Tether\u2019s growth recently, USDT\u2019s stablecoin dominance has dropped below 75% for the first time, according to Coin Metrics.<\/p>\n

<\/figure>\n

The drop in Tether\u2019s stablecoin market share may be somewhat attributed to the company\u2019s ongoing legal woes with the New York Attorney General<\/a>, potentially prompting traders to seek alternative stable tokens to protect against the risk of USDT losing its peg during the proceedings. Tether has lost its peg several times in recent history, dropping down to $0.96 on Jan. 5, 2021, and in October 2018.<\/p>\n

Tether may come under further pressure should the new \u2018Stable Act\u2019 be passed by U.S. lawmakers. If passed, the bill would require stablecoin issuers to obtain a chartered banking license, submit to audits by the Federal Reserve, obtain insurance and possibly store assets at the federal reserve.<\/p>\n