The total supply of the stablecoin market has just hit a new milestone after breaking above $100 billion, The Block has reported.
According to the publication, USDT and USDC, the stablecoins developed by Tether and the Centre Consortium, respectively, represent the highest stake. Talking about figures, this means that Tether represents a 62% market share, a figure that drops to 21% in the case of the USDC. However, we should take into consideration that the latter’s market share has been growing faster than that of Tether in the past weeks. Just to have an idea of how much it has increased, its share represented just 10% at the end of 2020.
2021 has seen an unprecedented growth in the stablecoin market, which has gone from $30B at the beginning of the year to the current $100B.
This increase might be the result of users putting their funds into stablecoins when trading derivatives, as stablecoins are usually used as collateral, while the users of the decentralized finance (DeFi) also use them to trade and lend funds as a way to make money through yields.