Could USDT lose its throne in the stablecoin market to its biggest rival, USDC?
Following the debacle of Terra's stablecoin UST, which led to the complete collapse of the LUNA ecosystem as thousands of people lost their investments, companies have continued to develop their own stablecoins, such as Shiba Inu, which recently announced that it will be using the LUNA stablecoin. the development of SHI, its stablecoin, should be ready by the end of the year.
On the other hand, financial regulators in countries are also regulating stablecoins, such as UK case, which aims to legislate the stablecoins as a form of payment.
Despite all this, stablecoins remain at the top of the cryptocurrency rankings by market capitalization, with USDT in third place and USDC close behind in fourth.
Could USDC overtake USDT in market cap?
According to data published in a report by Arcane Research, USDC currently has a market capitalization of over $54.800 billion, down 1,6% over the past 30 days.
For its part, USDT has a Total market capitalization of over $65.600 billion, with a drop in capitalization of 1,5% in the same period of time.
The report notes that stablecoins grew at a dizzying pace during the first four months of 2022, but have experienced a sharp change in trend, following the collapse of the LUNA ecosystem.
Arcane Research data also points out that while USDC has a growth rate of 70,4%, USDT has fallen by 28,7%. If this trend continues in the following months, USDC will surpass Tether as the leading stablecoin on the market, with a total market capitalization that could reach over $61.300 billion.
Another fact that supports this possible overtaking is that Tether had 47,5% market share at the beginning of 2022, while USDC only had 25,8%. However, in the second half of 2022, USDT's supremacy has fallen to 43,8%, while that of USDC has risen to 36,3%.
Could Tether fall?
Between regulators and the community, Tether has drawn a lot of criticism for its lack of transparency. about its investors, as well as the amount and origin of its reserves. In addition, audits are not consistent, which makes its positions very ambiguous.
On the other hand, USDC is more transparent about its reserves, which greatly benefits the price of the coin, as it makes it easier for users and investors to trust it. In addition, USDC receives audits every month, carried out by Center, a company created in partnership between Circle, Coinbase and Bimain.
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