The most popular stablecoin, Tether (USDT), currently appears to be in a deep soup as the market cap hits a 6-month low after a steady shrink. On the other hand, USD Coin (USDC) gained huge popularity while the volume has registered a huge jump in the past few days. So with the current momentum, USDC could very soon overtake USDT to become the third largest asset after Bitcoin and Ethereum.
USDT lost its peg shortly after the USDT d-peg event when traders dumped large amounts of USDT into FUD. The platform quickly swung into action and burned 3 billion tokens to stabilize the peg. No doubt, the peg was fixed but since then its value has never returned to $1. Hence, as many traders currently had to exit USDT, USDC has now become a safe haven for traders.
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So are USDC reserves currently safer than USDT?
It is a known fact that Tether is the most traded crypto asset in the market every day. But now, with a huge drop, USDT may be dethroned soon. The USDC market cap has been rising steadily since USDT’s fall. Currently, it is at an all-time high of more than $55 billion and under $14 billion to become the top third asset.
On the other hand, on-chain reports suggest that USDC could achieve this milestone very soon. New addresses and active addresses have recently soared higher at ATH levels with total active addresses indicating a swelling user adoption.
Combined, USDT dominance appears to be threatened by emerging stablecoins such as USDC and BUSD. Mainly due to the fact that USDC and BUSD are fully backed for USD reserves while USDT is still clearly lagging behind. Hence, USDC is likely to gain massive dominance in the coming days as the platform has now announced the launch of Euro-backed USDC by the end of June 2022.
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