<span style="font-weight: 400">There has been a huge increase in Defi protocols and the demand for tokens in the liquidity pool for quite some time. It is believed that this increase might be the reason behind the surge in the stablecoins supply. Nic Carter, the co-founder of Coin Metrics, has said that the current supply of stablecoins is increasing by $100 million on a daily basis. </span>

<span style="font-weight: 400">In his tweet on September 03, he mentioned that everyone is getting excited about Defi, meanwhile, ignoring the increase in the supply of stablecoins since mid-July. </span>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">everyone got so excited about DeFi no one pointed out that stablecoins have been adding $100m/day since mid July<a href="https://t.co/SM0hj7mBsp">https://t.co/SM0hj7mBsp</a> <a href="https://t.co/ZGtzQOY9qL">pic.twitter.com/ZGtzQOY9qL</a></p>
— nic carter (@nic__carter) <a href="https://twitter.com/nic__carter/status/1301477457153974272?ref_src=twsrc%5Etfw">September 3, 2020</a></blockquote>
<h2><b>Nic Carter Believes Defi Yields or Interest Rates Playing a Major Role</b></h2>
<span style="font-weight: 400">According to Carter, Defi yields or interest rates might be playing a huge role in this increase in the supply of stablecoins. <a href="https://www.cryptoknowmics.com/news/coin-metrics-data-demonstrates-stablecoins-performance/">Stablecoins</a> emerged as one of the most popular tokens that are being used in the liquidity pools for Defi protocols. Among all the stablecoins, DAI and USDC are among the most borrowed stablecoins in both Compound and Aave protocol.</span>

<span style="font-weight: 400">However, Tether is still on the top as it is holding an 80% dominance in the stablecoin market. A data was released by CoinMarketCap which stated that the total market cap of Tether was increased by $9.2 billion on July 15. This has now increased to $13.7 billion, which is a huge increase in less than two months. During that time, the trading volume of Tether has also increased by 150% and has now reached $54 billion.</span>
<h2><b>Andrew Bailey Believes Stablecoins Can Offer Useful Benefits</b></h2>
<span style="font-weight: 400">Not only, Nic Carter, several regulators have also started noticing this surge in stablecoins. Andrew Bailey, governor of Bank of England, has said that stablecoins have the potential to offer several useful benefits to UK investors. He also believes that there is a need for having coordinated international regulations on stablecoins. According to him, “A global stablecoin is a cross-border phenomenon.”</span>

Nic Carter Tweets Stablecoins Supply Increasing $100M Daily

Nic Carter, co-founder of Coin Metrics has said that the current supply of stablecoins is increasing by $100 million on a daily basis.

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

Nic Carter Tweets Stablecoins Supply Increasing $100M Daily

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