Tether’s Dominance Grows as USDC Stabilizes Amid Silicon Valley Bank Woes
Key Points:
- USDC on Ethereum loses 11 billion supply after Silicon Valley Bank’s collapse.
- Regulatory actions against Binance dent demand for Binance USD stablecoin.
- Tether grows from 32.3 billion to 35.3 billion in Ethereum stablecoin supply.
USDC stablecoin has seen a significant decrease in supply, dropping by 11 billion since the beginning of the year.
This is likely due to the high-profile depeg that occurred last month, in which the stablecoin lost its 1:1 peg to the US dollar after Silicon Valley Bank, where Circle had $3.3 billion in reserve funds, shuttered. As a result, investors were spooked and began redeeming their USDC, causing the supply to drop to just under 31 billion.
Other stablecoins on Ethereum have also seen a decrease in supply, including Binance USD and Gemini dollar. Binance USD has decreased from just over 16.5 billion to just over 7 billion, likely due to regulatory actions against Binance. The Commodities Futures Trading Commission recently sued Binance for allegedly violating federal laws and failing to register in the US. A Financial Times report also claimed that Binance intentionally obfuscated its links to China. Moreover, Binance Australia Derivatives recently had its license canceled by the country’s regulator due to global regulatory concerns.
Gemini has also encountered struggles, including a limited data leak of customers’ email addresses and partial phone numbers by a third-party, leading to phishing attempts from bad actors. The Winklevoss twins, founders of Gemini, recently loaned $100 million to their firm after an unsuccessful effort to raise outside funds.
All these struggles and concerns have only increased demand for Tether, which now accounts for almost 43% of the total Ethereum stablecoin supply, an increase of more than 10 percentage points since the beginning of the year. Tether also reported an attestation report in February, claiming that its assets exceeded its liabilities and reporting a net profit of $700 million for the fourth quarter of 2022.
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 us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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Tether’s Dominance Grows as USDC Stabilizes Amid Silicon Valley Bank Woes
Key Points:
- USDC on Ethereum loses 11 billion supply after Silicon Valley Bank’s collapse.
- Regulatory actions against Binance dent demand for Binance USD stablecoin.
- Tether grows from 32.3 billion to 35.3 billion in Ethereum stablecoin supply.
USDC stablecoin has seen a significant decrease in supply, dropping by 11 billion since the beginning of the year.
This is likely due to the high-profile depeg that occurred last month, in which the stablecoin lost its 1:1 peg to the US dollar after Silicon Valley Bank, where Circle had $3.3 billion in reserve funds, shuttered. As a result, investors were spooked and began redeeming their USDC, causing the supply to drop to just under 31 billion.
Other stablecoins on Ethereum have also seen a decrease in supply, including Binance USD and Gemini dollar. Binance USD has decreased from just over 16.5 billion to just over 7 billion, likely due to regulatory actions against Binance. The Commodities Futures Trading Commission recently sued Binance for allegedly violating federal laws and failing to register in the US. A Financial Times report also claimed that Binance intentionally obfuscated its links to China. Moreover, Binance Australia Derivatives recently had its license canceled by the country’s regulator due to global regulatory concerns.
Gemini has also encountered struggles, including a limited data leak of customers’ email addresses and partial phone numbers by a third-party, leading to phishing attempts from bad actors. The Winklevoss twins, founders of Gemini, recently loaned $100 million to their firm after an unsuccessful effort to raise outside funds.
All these struggles and concerns have only increased demand for Tether, which now accounts for almost 43% of the total Ethereum stablecoin supply, an increase of more than 10 percentage points since the beginning of the year. Tether also reported an attestation report in February, claiming that its assets exceeded its liabilities and reporting a net profit of $700 million for the fourth quarter of 2022.
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 us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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