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The capitalization of the largest stablecoins Tether (USDT) and USD Coin (USDC) exceeds $78.431 billion and $45.432 billion, respectively.
At the same time, USDC was recently able to bypass USDT in terms of the value of tokens placed on the Ethereum network - $ 39.92 billion against $ 39.82 billion.
Based on ETH, the lion's share of digital currencies backed by fiat money is deployed. However, USDT and USDC supply continue to grow on networks such as Solana and Algorand.
The growth in USDC capitalization is observed against the backdrop of increased demand for this token from users of protocols launched on the DeFi decentralized finance market.
A representative of the Circle startup, which developed the USD Coin, said that digital currencies with collateral are always in high demand during turbulence in the crypto market.
When bitcoin and other virtual currencies increase in value, traders use USDC to enter the exchanges and then buy BTC and altcoins. When the market, on the contrary, falls, investors sell volatile assets and enter stablecoins to hedge risks.
USDC is predominantly used by US traders while Asian investors prefer the USDT coin.