Glassnode, an on-chain data analytics platform, disclosed today that USDC, the world’s second largest stable coin, is gaining traction as crypto investors prefer it over USDT. This may be seen in the total number of supplies added to the coin in the last month alone.
USDC had a market cap of $4.1 billion in January 2021, but it has since increased by nearly 1000 percent to $55.27 billion. According to Glassnode, total stablecoin redemptions have totaled $9.92 billion since the beginning of May 2022.
According to the data, USDT witnessed the greatest redemptions of -$13 billion from the beginning of May to today, followed by DAI with -$2 billion, owing to investors closing down leverage or liquidation. Meanwhile, the market capitalization of USDC has increased by $5 billion in less than two months.
The overall market capitalization of the top four stablecoins (USDT, USDC, BUSD, and DAI) has now surpassed Ethereum’s market capitalization by $3 billion, according to the data. As a result of these developments, USD stablecoins have become the account and quote asset’s unit.
Circle to launch new token
Another connected issue that may have aided USDC’s rise is the recent FUD surrounding USDT. USDC’s issuer Circle is likewise known for adhering to the law, unlike Tether, which has had a number of legal issues.
By the end of June, Circle, the company behind the dollar-pegged USDC, will launch a new cryptocurrency called the Euro Coin (EUROC). The new coin, like its dollar equivalent, USDC, will be backed by the single European Currency.
Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world’s most trusted digital currencies, said Jeremy Allaire.
Circle’s CEO and co-founder, Jeremy Allaire, stated that there is a demand for euro-pegged currencies, and that Circle would help create a safe and “interoperable value exchange worldwide.”