Tether (USDT) has long been ensconced in its throne as king of stablecoins. But could that change? Yes, according to a study that predicts Circle’s USDC will soon surpass it.
USDC Comes Hunting on USDT Land
The stablecoin industry has seen considerable upheaval this year with the fall of the Terra ecosystem. As a result, this category of cryptocurrencies is increasingly being watched by regulators. The USDT, a historical troublemaker who made up his mind to settle with a rather flexible communication, suffered from it. Enough to leave room for a major competitor: the USDC, a stablecoin supported by Circle and Coinbase.
As the report points out, the dominance of USDT dropped below 50% for the first time in November 2021, faced with the arrival of new rivals. If we look at its capitalization, the fall is very clear, and it was initiated with the Terra case last May:
USDT Capitalization Progression
Tether suffered from the wave of distrust that swept through stablecoins, especially as it briefly lost parity with the dollar, as FUD ruled the markets. For its part, the USDC has done quite well in the last few months :
USDC Capitalization Progression
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A “flipping” to come?
Today, USDT and USDC are in the 3rd and 4th places in the ranking of the most capitalized cryptocurrencies. Their market cap now only separated by $10 billion. Hence a hypothesis: the USDC will soon overtake the USDT. Arcane Research’s projections tend to confirm this scenario:
Projection of the evolution of the capitalizations of the UDST and the USDC
According to these estimates, USDT and USDC would meet next fall :
“Extrapolating these growth curves, the USDC would dethrone Tether as the largest stablecoin, with a market cap of $61.3 billion, on October 10, 2022.»
Of course, these predictions do not take into account events that could occur between now and then, but simply report an underlying trend.
It should also be noted that regulators should continue to review – and legislate – regarding stablecoins in the coming months. It could therefore favor cryptocurrencies like USDCwho played the card of transparency from the start.
👉 Read also – Shiba Inu (SHIB) will launch a decentralized stablecoin and a reward token
published by editions Larousse
Source: Arcane Research – Chart: CoinGecko
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