USDC flips Tether on the Ethereum network

Circle’s USD Coin (USDC), has passed Tether (USDT), in total supply on Ethereum.

As of writing, USDC has a current supply of 40.06 billion Ethereum tokens. This is just over USDT’s 39.82 billion.

Since at least 2016, Tether has been the most widely used stablecoin, having initially shared the market with BitUSD (USNBT), and NuBits(USNBT) when it was launched in late 2014. USDT was running on Omni at the time. The two latter fell into disrepute due to losing their dollar pegs and shedding users. In 2018, USDC emerged as a transparent and better regulated competitor to Tether. Tether has been in a dark cloud for many years because of doubts about its backing.

USDT remains the most widely used stablecoin, with a supply of 78.5billion tokens. However, almost half of that supply, or 38.7billion tokens, are on Tron. USDT can also found on BSC and Solana, Huobi ECO Chains, Avalanche and Polygon as well as 13 other chains or layer-2 solutions.

USDC currently has a total supply of 45.7 billion tokens, spread across 21 layers or layer-two options.

Tether’s backing has been a source of controversy for the company over the years. This has led to a decline in its public image. The company has been plagued by controversy over the way the stablecoin is secured and its management of reserve funds.

Doubters were not dispelled by the Moore Cayman 2021 Consolidated Reserves Reports on Tether’s financial reserves. Tether’s most recent financial report revealed that Tether has $30.8 billion of unspecific commercial paper and other assets supporting USDT.

Circle has been more open about its reserves than some critics would like, but not in the way that they demand. Emilie Choi, Coinbase President, stated in August 2021 that USDC reserves supporting the second-largest stablecoin on the market would be converted entirely to cash and US Treasury Bonds. Grant Thornton’s Independent Accountant’s Report confirmed that this was true by October 27th 2021.

Coinbase is a partner of Circle, a digital payment service that helped launch USDC in October 2018. Circle is supported by Bitmain, China Everbright Bank and eight other banks.

It supports efforts to establish a regulatory framework for all stablecoins. Circle CEO Jeremy Allaire supported a Nov. 20,21 Biden Administration proposal that stablecoin issuers be treated similarly to banks. Allaire was also present at a Congressional hearing in December 2021 with top crypto industry leaders to discuss policy direction with Financial Services Committee.

While the three most popular stablecoins in their respective categories are USDT, USDC and BUSD, decentralized stablecoin options are beginning to emerge.

Related: Hong Kong Monetary Authority plans to monitor stablecoin reserves

The fourth-largest stablecoin is TerraUSD (UST), but it is also the fastest growing. It was launched in Nov. 2021. It has now surpassed Magic Internet Money and DAI (DAI) to reach a $10.7 million market cap.

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