About two months ago (83 days to be exact), the USDC stablecoin was showing significant value on the stock market. At $55.52 billion, it was one of the most followed coins in the cryptocurrency market. At the start of the week, it lost the equivalent of 12.05%. A situation that undermines crypto! Knowing that it has raised all year above the symbolic bar of 50 billion dollars, it is a real blow to arrive today at 48.82 billion.
Crypto: Eternal fight between USDC and USDT
the weekly chart of the USDC’s market capitalization makes it clear: the drop in crypto is phenomenal. While the best-known tokens like ETH and BTC tend to lose 1-5%, USDC is down 12% from its all-time high. We see a decline in the value of this crypto at a rapid speed: 12% in just three months.
In contrast, the market capitalization of Tether (USDT) is showing a bullish trend. This stablecoin indeed seems to stand out even more from its USDC cousin. By exceeding 68 billion dollars on September 26, it recorded a considerable increase. A situation that has already occurred in mid-June, but where the places were reversed.
In mid-June, USDT lost over $12 billion in market capitalization. A figure so important that the event had made the headlines in the world of crypto. At the same time, however, the USDC had registered a considerable increase of 9%.
USDC Freefall: Multiple Factors to Consider!
Several reasons can explain this drop in the USDC stock market. Binance’s suspension of USDC support tops the list. Indeed, Binance has announced that the USDC balances of users of the platform will be replaced by Binance’s own stablecoin. Since this announcement made in early September, the USDC has lost $9.5 billion on the stock market.
Some believe that this fall is the effect of the Terra fiasco. After the failure of the Terra project in May, stablecoins have unfortunately suffered negativity and fear from investors. The proof, their total market capitalization has fallen sharply. Going from 97 billion to 80 billion in September, there is a loss of more than 10 million dollars.
Despite a substantial fall, the USDC stablecoin does not sign its death. He can even bounce back better and is already planning retaliation. Circle Internet Financial, the company behind USD Coin (USDC), recently announced that it is working on developing five major crypto blockchains. A solution aimed at maintaining the reputation of the token after Binance removed it from its platform.
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