When Terra’s UST lost its 1:1 dollar peg in May, it was one of the more alarming developments in the stablecoin market. The de-peg caused chaos and completely damaged Terra’s credibility. The USDT and USDC did, however, escape the massacre.
Other stablecoins are working hard to fill the gap left by it. This research indicates that the USD coin (USDC) is in the lead. By market capitalization, USDT is currently in third place, and USDC is immediately behind it in fourth place.
According to information made public by Arcane Research, the market value of UDSC is currently over $54.8 billion. A decrease of 1.6% was noted over the previous 30 days. The market capitalization of USDT is greater than $65.6 billion. It has also dropped by 1.5% over the same time period.
The stablecoin balloon had been growing for some time, according to Arcane. For the first four months of 2022, this worked satisfactorily before a sharp trend reversal shook the market.
The USDC can overtake the USDT based on the mentioned growth rates. While the growth rate of USDT has fallen by 28.7%, that of USDC increased by 70.4%. If the current rate maintains, the USD coin will surpass Tether as the largest stablecoin on October 10, 2022. The value of the USDC market will top 61.3 billion.
At the beginning of 2022, Tether had a 47.5% market share. USDC, on the other hand, had 25.8%. After the first half of 2022, Tether’s dominance, however, fell to 43.8% while USDC’s increased to 36.3%.
Tether has come under fire for being secretive about its investments and reserves. The audits conducted by Tether are also inconsistent. The placements of Tether are further complicated by these elements.
On the other hand, USDC is periodically audited and is more transparent about its reserves. This has a significant positive impact on the currency since it makes it easier for investors to have confidence in it. Center, the parent business of USDC and a collaboration between Circle, Coinbase, and Bitmain, performs monthly audits.