UpdatesAug 29, 2022

USDC Coin is likely to overtake USDT soon, says Arcane Research

Tether may soon lose its position as the dominant stablecoin!

According to analysts from Arcane Research, the second largest 'stable' cryptocurrency will probably overtake the current leader. While the daily trading volume of Tether (USDT) is still much higher than that of USD Coin (USDC), the latter may gain more favor from investors due to its transparency. Its issuer decided to regularly issue monthly reports on the state of the reserves securing this stablecoin.

USDC Coin will most likely overtake USDT

Tether is currently in the first position among the so-called stable cryptocurrencies. Its current market capitalization exceeds $ 66 billion. USD Coin is on his heels, which climbed the ranks of the CoinMarketCap platform fairly quickly. It is the second largest stablecoin with a market value of over $ 54.4 billion.

According to analysts from Arcane Research, USDT may soon be dethroned in favor of USDC. While it has a huge advantage in terms of daily trading volume, it lags behind its closest rival in some respects.

According to experts, it is transparency about the reserves that secure a given stablecoin that is extremely important for investors. After the defeat of TerraUSD (UST), they began to attach even more importance to it.

USDC has recently come to be seen as a safer alternative. Some time ago, its issuer decided to make progress on transparency by publishing its first report revealing the full allocation of reserves. The document shows that they are held in fiat currency and 3-month US bonds, held in segregated accounts.

It is also worth reminding that after the collapse of the UST, USDT's link with the US dollar fell to $ 0.97. Recovery of peg up to $ 1 it took him nearly 2 months. During the same period, volatility also appeared on the USDC, but it managed to stabilize almost immediately.