USDC has seen tremendous growth and is rapidly rising in Tether, the king of stablecoins.
Circle’s co-founder and CEO, Jeremy Allaire, made a bold prediction that the firm-issued stablecoin was on its way to surpassing payments giant PayPal in terms of the traded dollar value.
The comments came in a tweet on April 6, when Allaire referred to the on-chain transaction volume for USDC last year and reported that it was over half a trillion dollars.
He added that this was about half of the total payment volume for PayPal in 2020, and pointed out that there will be a “transition ahead” soon.
As some respondents to the tweet have noted, these two things are not necessarily comparable, as USDC is primarily used on crypto exchanges for trading and speculation, as transactions through PayPal are used to pay for goods and services. But it helps put USDC’s growth breakthrough into perspective.
According to Statista, PayPal’s annual transaction volume for 2020 was $ 936 billion, an increase of 31.5% compared to the previous year. In the fourth quarter of 2020, PayPal’s net payment volume was approximately $ 277 billion, representing 39% annual growth.
In contrast, the market’s dominant stablecoin Tether reached $ 600 billion in cumulative transaction volume by mid-October 2020, and reportedly surpassed $ 780 billion at the end of the year. Daily volumes for stablecoins started to increase in the fourth quarter of 2020 as the bull market gained momentum.
Messari reported that he is currently setting daily volumes at $ 2.5 billion for USDC and $ 9.8 billion for USDT. In terms of roaming supply, Tether is currently at a record high of $ 43.3 billion, while USDC has $ 11.3 billion in circulation, according to Tether’s transparency report. This figure means 1.500% growth since the same period last year.