Is the USDC Ready to Overtake Tether’s USDT?

Tether (USDT) has long been settled in his throne as the king of stablecoins. But could it change? Yes, according to a study that predicts Circle’s USDC will overtake it soon.

USDC comes hunting on USDT Land

The stablecoin industry this year has undergone considerable upheaval with the fall of the Earth ecosystem. As a result, this category of cryptocurrencies is increasingly monitored by regulators. The USDT, a long-time troublemaker who decided to settle for rather flexible communication, suffered. Enough to make room for a major competitor: the USDC, a stablecoin backed by Circle and Coinbase.

As the report points out, the dominance of USDT for the first time it dropped below 50%. in November 2021, faced with the arrival of new rivals. If we look at its capitalization, the fall is very evident, and it started with the Terra case last May:

USDT capitalization progression

Tether suffered from the wave of distrust that engulfed stablecoins, especially as it briefly lost par with the dollar as the FUD dominated the markets. For his part, the USDC it has done quite well in the past few months :

USDC capitalization

USDC capitalization progression

👉 To go further – Stablecoin, all about this type of cryptocurrency

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A “flipping” on the way?

Today USDT and USDC are in 3rd and 4th place in the ranking of the most capitalized cryptocurrencies. Their market capitalization now separated by only $ 10 billion. Hence a hypothesis: the USDC will soon overtake the USDT. Arcane Research projections tend to confirm this scenario:

USDT USDC projection

Projection of the evolution of the capitalizations of the UDST and the USDC

According to these estimates, USDT and USDC they 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 forecasts 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 are expected to continue to review – and legislate – on stablecoins in the coming months. It could therefore prefer cryptocurrencies such as USDCthat from the beginning played the card of transparency.

👉Read also – Shiba Inu (SHIB) will launch decentralized stablecoin and reward token

published by editions Larousse

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Source: Arcane Research – Graph: CoinGecko

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