Will USDT Be Ousted By USDC?

Will USDT Be Ousted By USDC?

USDT and USDC are now leading the race of stablecoins. By market capitalization, USDT is now in third place, while USDC is just behind it in fourth place.

According to data made public by Arcane Research, the market value of UDSC is presently above $54.8 billion. A decrease of 1.6 percent was seen during the previous 30 days. In comparison, USDT has a market capitalisation of more than $65.6 billion. It has also dropped by 1.5% during the same time period.

The stablecoin market had been growing for some time, according to Arcane. For the first four months of 2022, this worked nicely before a sharp trend reversal shook the market.

The USDC can overtake the USDT based on the stated 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, USDC will surpass USDT as the biggest 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%.

Arcane highlights a number of important factors that USDC would need to meet in order to defeat Tether, but there are still other factors to consider.

Tether has firstly been attacked for being unclear 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 frequently audited and is more transparent about its reserves. This has a significant positive impact on the coin since it makes it easier for investors to have faith in it. Center, the parent company of USDC and a collaboration between Circle, Coinbase, and Bitmain, performs monthly audits.

Stablecoin policies are now being considered by many nations. Therefore, it seems obvious that the currency with the most openness and audits will also be the one with the most users.

However, because USDC is more centralized, it is more top-controlled. While USDT can only be followed via data from the blockchain. The stablecoin arms race is still going on, but it looks like USDC will win.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News