- Report from Arcane Research shows stablecoin USDC to be the top soon.
- USDC’s growth rate increased by 70%, while USDT is down by 28.7%.
- The CEO of Blockstream criticized the report, saying looking at market cap only is “highly misleading.”
USDT (Tether) and USDC (USD Coin) are the two largest stablecoins right now. Both stablecoins have a combined share of over 80% of the total stablecoin supply in the market.
Currently, Tether USDT is sitting at the top for it holds over 50% of the total stablecoin supply, followed by USDC which was nearly at 30%. However, a report from Arcane Research showed that USDC might overtake USDT’s position in the future.
Stablecoins are cryptocurrencies where the prices are pegged to USD. Investors use these coins to limit their assets from price crashes or volatility. But the recent market crash, particularly the depegging of Tether UST, has caused panic and trust from these stablecoins.
According to the data from arcane research, USDC has kept up with its growth for quite a while now. From January to April 2022, USDC has shown a huge increase before the market crash in May.
While USDC’s growth rate increased by 70.4%, USDT plummeted by 28.7%. Based on this data, analysts believe that USDC will take over USDT’s position as the biggest stablecoin. Particularly, experts predict that USDC will exceed USDT after it crosses the 61.3 billion market cap on October 10, 2022.
Meanwhile, the CEO and co-founder of Blockstream Adam Black slammed the data in a tweet by saying USDT is so far ahead. Adding that it’s too late for USDC to catch.
Report indicated that USDT has experienced the “first mover advantage.” Despite this advantage, its market cap fell dreadfully from November 2021.
Right now, the market cap of USDT is at $65.8 billion from $78 billion. On the other hand, USDC’s market cap increased from $42.2 billion to $55 billion.
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