The most popular Stablecoin, Tether(USDT) currently, appears to be in a deep soup as the market cap after shrinking constantly has reached a 6-month low. On the other hand, the USD Coin (USDC) gained huge popularity while the volume is recording a massive jump in the past couple of days. Therefore with the present momentum, the USDC may even surpass USDT to become the 3rd largest asset after Bitcoin and Ethereum very soon.
USDT had lost its peg soon after the UST de-peg event when the traders dumped huge amounts of USDT falling into FUD. The platform quickly jumped in action and burnt 3 billion tokens to stabalize the peg. No doubt, the peg was stabilized but never regained its value at $1 since then. Therefore, as many traders, currently just were to get out of USDT, USDC now appears to have become the safe heavens for the traders.
So whether USDC reserves are currently safer than USDT?
It is a known fact that Tether is the most traded crypto asset each day in the market. But now, with a drastic fall, USDT could be de-throned shortly. The USDC market cap is constantly raising since the time when USDT tumbled. Currently, it is at an all-time high level of above $55 billion and short of another $14 billion to become the top 3rd asset.
On the other hand, the on-chain reports suggest that USDC may achieve this milestone in a short while. The new addresses and the active addresses recently spiked high with the total active addresses currently at the ATH levels, indicating a swelling user adoption.
Collectively, USDT’s dominance appears to have been threatened by emerging stablecoins like USDC and BUSD. Mainly due to the fact that USDC & BUSD are fully backed to USD reserves while USDT still lags clarity. Therefore in the upcoming days, USDC may gain huge dominance as the platform has now announced a Euro-backed USDC to be rolled out by the end of June 2022.