- USDT has grown its market share by 20% while USDC slid by 13% post-Terra (LUNA).
- USDC’s losses were due to investor mistrust following Circle’s exposure to Silicon Valley Bank.
- Meanwhile, USDT purchased $1.5 billion worth of bitcoins from its US treasury interest.
One year after the infamous Terra (LUNA) crash, the stablecoin market appears to be gravitating further toward Tether USD (USDT). In fact, according to Glassnode, USDT’s market dominance has grown by a sizeable margin — a staggering 65.9%.
As shown in the chart below, this translates to an additional growth of 20%. Meanwhile, Circle USD (USDC) is one of the biggest losers — apart from Terra USD (UST) — with a 13% market loss.
USDC’s losses were due to Circle’s exposure to American bank failures from the first quarter of this year.
Specifically, as many can recall, Silicon Valley Bank (SVB) suffered a tragic bank run that drove the US banking sector into deep chaos. In fact, the entire banking industry is still reeling from the impact of consecutive bank runs of Credit Suisse, Silvergate Bank, First Republic Bank, among others.
Circle had bank exposure with SVB, and the FUD following the bank’s collapse shook user confidence in USDC. From $43.5 billion market share in March, USDC has fallen to $30 billion today.
On the other hand, from $72 billion in March, USDT has grown its market cap to almost $83 in barely two months. Some of Tether’s interest from US treasury investments have been converted into bitcoins.
As explained in the tweet above, Tether has purchased $1.5 billion worth of bitcoins from excess reserves due to profitable US investments.
In other news, Terraform Labs’ notorious former chief Do Kwon has been granted bail by Montenegro.
