USDC's supply on Ethereum surpasses that of rival USDT's for the first time

Quick Take

  • The total supply of the USDC stablecoin on Ethereum has surpassed that of USDT’s for the first time.
  • USDT’s total supply across blockchains, however, remains higher than that of USDC’s.

The total supply of the USDC stablecoin on the Ethereum blockchain has surpassed that of rival Tether's (USDT) for the first time.

The current total supply of USDC on Ethereum stands at 39.92 billion, whereas USDT's total supply on the blockchain stands at 39.82 billion, according to Etherscan.

USDC's supply beating USDT's on Ethereum is significant since the blockchain remains a major contributor of growth for both stablecoins. USDC and USDT are available on several blockchains, including Solana and Algorand.

DeFi and other factors driving growth 

One of the main reasons for USDC's recent growth has been its increased usage in the decentralized finance (DeFi) market. Stablecoins are used for trading on decentralized exchanges and for various purposes within DeFi protocols.

Recent significant market moves also drove USDC’s growth, a Circle spokesperson told The Block.

"As digital asset markets trend up or down, both scenarios tend to generate increased demand for USDC — especially during significant market moves,” said the spokesperson.

When markets move up, increased interest from investors causes an increased demand for USDC as a way to bring fiat currency into crypto trading platforms. On the contrary, when markets go down, more traders are selling volatile assets into stablecoins like USDC, said the spokesperson.

USDT is different from its competitors "that rely mainly on DeFi platforms to boost their supply," Tether CTO Paolo Ardoino told The Block. USDT's demand is mainly driven by centralized exchange users and institutions, he said.

But with the recent bearish crypto market sentiment, USDT's demand from institutions has decreased, said Ardoino, adding that demand from retail investors, however, is growing from Turkey and several countries in Latin America.