• USDC’s market capitalization has declined by almost half compared to a year ago, while Tether’s USDT has gained more dominance.
• The unstable market cap of USDC was accelerated due to the insolvency of Silicon Valley Bank where Circle had placed $3.3 billion of its reserves.
• Despite this, Tether’s USDT continues to pull further away, with its market capitalization surging by nearly $20 billion from January to the present date.
Stablecoin Dominance Race: USDC Loses Ground
USDC Market Cap Dwindles
USDC’s market capitalization has declined by almost half compared to a year ago. At the start of August 2022, it exceeded $50 billion but is now valued at just over $25.9 billion as of August 2023. This reflects an 8% drop in value from 11 March and a subsequent lack of recovery since then.
SVB Stumble Deepens Troubles
The decline in USDC’s value was further compounded by the insolvency of Silicon Valley Bank (SVB), where Circle had initially placed $3.3 billion in reserves. Although Circle did regain control over these funds following a federal bailout, the situation still accentuated USDC’s troubles and reshaped the stablecoin landscape considerably.
Tether’s Rise Accentuates Divide
Meanwhile, Tether (USDT) has surged ahead with its own market capitalization reaching nearly $66.5 billion since January 2023 – an increase of around $20 billion in eight months alone. This rise accentuates the divide between USDT and USDC and further reduces any chance for immediate recovery on behalf of USDC .
It remains uncertain whether or not USDC can manage to claw back some ground in terms of total market cap share when compared against other stablecoins such as Tether (USDT). As things stand today however, it appears that USDT is firmly leading the way in terms of overall dominance within this sector as we enter into what could be an exciting summer for all crypto enthusiasts out there!