The “terrifying” statistic about USDC

Many brothers also know USDC as a stablecoin. Recently, however, I happened upon some notable parameters of this coin by accident. Let’s take a look at what these mysterious numbers are and what they mean.

What is USDC? USDC. Stablecoin overview

USDC is a stablecoin issued by Circle and Coinbase. Every USDC is supported by “1 USD”, and this cash is kept in banks. Remember to pay attention to this article, it is a guarantee 1 dollar bill.

Using a dollar bill to secure each stablecoin unit is much safer and more transparent than using a specific stablecoin T. Receivables or “other assets” or “cash equivalents” Supporting a stablecoin is extremely risky.

Well, to briefly show you the uniqueness of the USDC, let’s go over some statistics that I think are pretty impressive. To be honest, it gave me a lot of new perspectives on USDC.

More than 50% of the collateral for DAI is in USDC

At first I was a bit surprised because I thought that most of the collateral in support of DAI is large-cap cryptos like Ethereum, BTC etc. The truth is however more than 50% of the stake comes from USDC.

more than 56% of DAI collateral is USDC. will discuss this tomorrow at Soranomics. https://t.co/80FvPTBXVU pic.twitter.com/9KJ7zULYEL

– Tim Swanson (@ofnumbers) June 21, 2021

This shows, in part, that the DeFi market (emphasis only on DeFi, not the entire crypto market) is quite heavily influenced by USDC.

Some even think USDC can create a painful centralization point for DeFi when khi This currency is heavily dependent on the US banking world.

USDC increases coverage in ecosystems

Recently USDC announced that it is available on Avalanche’s network – this is a DeFi ecosystem that is also very popular and is attracting a lot of attention from brothers in the community. If you have any questions about Avalanche’s potential and next steps, please refer to the following article to learn more:

And now we’re back to the USDC. After switching to Avalanche earlier, USDC was in overall 6 main block chains (Ethereum, Solana, Algorand, Avalanche, Tron, Stellar).

The team said that USDC could be fully expanded to many other ecosystems such as Polkadot, Tezos or even Cardano in the near future. The number of chains USDC is aiming to expand is also shared with CoinDesk can go up to 10, completely exceeded Number 8 from Tether available.

Top 2 in terms of capitalization

At the time of going to press, USDC has a market capitalization of approx. $ 25 billion, This makes it the second largest coin by market capitalization in the stablecoin array, just behind Tether.

Tether is still the dominant #stablecoin with USDC next in line

Are you tied up#stablecoin #tether pic.twitter.com/5PEygJYnr3

– Kyros Ventures (@KyrosVentures) July 2, 2021

That number is still less than half the level $ 62 billion from Tether, however, this is pretty big hope for the marketplace. Quite simply because by redistributing the cake, the market can completely reduce the risk of concentration in one place. And surely you know Tether’s personal seal all too well, right?

96% USDC is focused on the Ethereum chain

Many people will think that USDC is Solana’s baby, as most of the products in this ecosystem are USDC-pegged. According to the latest data, however USDC is mainly focused on Ethereum. In detail, the chain data are as follows:

• Ethereum: 96%
• Solana: 3%
• The remaining chains: 1%

A little comparison with Tether (if the bulk of this stablecoin is focused on Tron’s chain), the fact that USDC is centralized in Ethereum can be an obstacle to ease of use with high transaction fees as well as the speed on this network is quite slow.

What “possible” risks arise if the USDC grows too fast?

First, The problem of concentrating a large amount of capital in a stablecoin has preoccupied many investors for a very, very long time. In the event USDC is able to outperform Tether, it should be emphasized that the market could experience another bottleneck in risk allocation “just in case”.

Monday, As mentioned above, USDC is purely dependent on the banking world in the US. This is tantamount to admitting that our current “decentralized” game is “controlled” by Wall Street.

end

We just went through some notable numbers about USDC. Hopefully the above article will give you new perspectives on USDC – a pretty hot stablecoin right now.

Note: The above article is for informational purposes only and should not be viewed as investment advice.

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