Stablecoins: Circle’s troubles benefit Tether

The market cap ofUSDC from Circle a fade out to the one of theUSDT. Tether now dominates by far the market of stablecoins.

The difficulties encountered by the banking partners of Circle and the depeg of its stablecoin in early March benefited its rival Tether.

Since March 10, the USDC has lost nearly $10 billion in market capitalization while that of the USDT increased by about $8 billion.

USDC MarketCap - source: Messari

USDC Market Cap – source : Messari

According to data provided by Messari, the US fintech stablecoin currently has a market cap of 32.8 billion versus 79.4 billion dollars for the Tether token.

USDT Marketcap - Source: Messari

USDT Market cap – Source: Messari

While theUSDC returned to parity with the dollar around March 13, 3 days after the tragedy, and Circle then tried to reassure its customers about its banking partners, the digital coin continues to lose ground today. In the last 7 days, its market cap has melted by about $1.5 billion.

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Last year, the implosion of the Terra ecosystem benefited USDC more than USDT, whose issuer Tether has in the past often been criticized for its transparency. But traders eventually pivoted back to USDT a few months later.

Note that the stablecoin market was recently also heavily impacted by the forced shutdown of the BUSD last month by US authorities. The market capitalization of the token issued by Paxos for its partner Binance has been divided by more than two since then.

Top 5 stablecoins by market cap – source: CMC

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