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In the last three months, according to the latest crypto news, Tether (USDT) has surpassed its rival Circle (USDC) on Aave, reaching a new peak of 536 million dollars in Aave V3 on Mainnet.
USDT just surpassed USDC on @aave for the first time
— Lucas (@LucasOutumuro) January 9, 2024
The amount of USDT in Aave v3 on Mainnet has more than doubled in the last 3 months to a record of $536M today pic.twitter.com/pL9RowipWv
Let’s see below all the details and implications.
Summary
Crypto news: the boom of USDT on Aave, surpassed even USDC
As anticipated, Tether (USDT) has recently claimed the first place on Aave, surpassing USDC for the first time.
In just 3 months, in fact, the amount of USDT on Aave V3 on Mainnet has more than doubled, reaching an impressive record of 536 million dollars.
This significant increase raises questions about market dynamics and the reasons behind users’ preference for Tether.
According to some experts, such rapid growth could be attributed to factors such as the stability of Tether’s price and its widespread acceptance in DeFi transactions.
The in-depth analysis of this phenomenon offers an interesting perspective on current trends in the decentralized finance landscape and suggests possible future developments in the relationship between stablecoins and DeFi platforms.
In addition, Tether has also recently generated one billion new tokens on the Ethereum blockchain. This significant expansion has raised the market capitalization of USDT to a record 93 billion dollars.
This increase coincides with a renewed interest in the cryptocurrency market, partially fueled by discussions about a possibleBitcoin ETF in the United States.
This rebirth has generated a greater demand for stablecoins like USDT, crucial for the immediate needs of commercial transactions.
Tether’s initiative to increase supply represents a strategic response to this growing demand, indirectly contributing to market strengthening.
Milestones also for Circle: the enhancement of its Stablecoin platform
Circle, a leader in the field of stablecoins, is currently implementing significant improvements in developer support and expanding its protocols and platform.
The main objective of this development is the integration of the stablecoins $USDC and $EURC into various test networks Sepolia, with a focus on optimizing the experience of Circle’s stablecoin protocol developers.
As part of this expansion, USDC will be equipped with exclusive Sepolia testnet addresses for the Arbitrum, Base, Ethereum, and OP networks.
Similarly, EURC will introduce Sepolia testnet addresses specific to Ethereum. The Circle Coin Transfer Proxy (CCTP) will make use of these new Sepolia testnet addresses in the Arbitrum, Base, Ethereum, and OP networks.
As part of this transition, the attestation API will cease to support Goerli, showing a clear preference for Sepolia.
An important change has also been announced by the Faucet, which has discontinued support for $USDC and $EURC on the Goerli test networks. Developers now have the option to select and obtain stablecoins on the Sepolia test networks.
The previously generated Circle Mint deposit addresses from Goerli will be restored. Therefore, sending $USDC or $EURC to these restoration addresses will result in permanent loss of funds in Circle Mint tests.
However, past and ongoing transactions will remain unchanged.
It should be noted that the Circle Mint Sandbox APIs will be temporarily unavailable for 1-2 hours during the migration to Sepolia for the testnet distributions of $USDC and $EURC.
The decision by Circle to support $USDC and $EURC on the Sepolia test networks represents a significant step forward for the progress of stablecoins.
This choice aims to improve the stability and security of the platform, following the industry trend of moving away from obsolete networks like Goerli.
This result provides developers with advanced tools and infrastructure to work with stablecoin protocols on Sepolia test networks, offering significant advantages.