The total supply of stablecoins has now surpassed the 100 billion milestone.
Interestingly, more than 70% of the supply was printed just in the first five months of 2021, as the stablecoin supply started this year at just under $29 billion.
On March 1st, 2020, the total stablecoin supply was a mere $5.95 billion. On March 4th, 2021 it had added nearly $50B to reach $55 Billion.
Tether (USDT) remains the dominating stablecoin with its supply at 62.25 billion. However, USD has been continuously losing its dominance, down from over 97% in late 2018 to 85% in the mid of last year to now at a mere 62.17%.
Issued on several blockchains, it is currently at nearly $33 billion the most of USDT is supplied on Tron blockchain, then at Ethereum at almost $28 billion.
The biggest reason for Tether’s downfall is USDC, whose supply was at 4.18 billion at the start of 2021 and has now reached 21.86 billion, recording an increase of 423%. In March last year, USDC supply was not even half a billion dollars.
USDC now accounts for nearly 21% of the stablecoin market share, up from 6.77% a year back.
Meanwhile, BUSD has an 8.86% market share, followed by DAI’s 4.50% and PAX’s 1.32%.
“The increase in market cap for USDC, PAX, BUSD, and DAI marks a very important transition from only 1 major stablecoin provider and helps make a more robust ecosystem,” noted Split Capital.
“This is also a major problem for existing banks + fintech companies that don’t have an actionable plan for crypto.”
The value in stablecoins has also started to dwarf major banks’ market caps. But the biggest ones are still a bit far off, with JPMorgan having a $490 billion market cap, Bank of America $360 billion, Wells Fargo $191 billion, Morgan Stanley $166 billion, and Citigroup $160 billion.
“The most obvious reason why this is bullish is because dollars are no longer flowing only from BTC <> USD but through other points (DeFi, ETH, etc.) & the dollars remaining within the ecosystem and not moving back out,” said Split Capital.