Recently, Circle’s USDC stablecoin nearly went under due to the banking crisis. The sinking was narrowly avoided. Since then, the situation does not really seem to be picking up for the crypto.
The USDC, abandoned in favor of the USDT
It has been a few weeks since the bankruptcy of Silicon Valley Bank (SVB) nearly engulfed the USDC stablecoin. The stablecoin market seems to have improved since then. The same cannot be said for the USDC which seems to be doing poorly.
According to information which leaked this Monday, April 3, the native stablecoin of the crypto firm Circle is facing a crisis of confidence. The latter results in the abandonment of the asset by more and more users. They seem to be setting their sights on Tether’s rival USDT stablecoin, which they believe is more secure in the current circumstances.
This effectively results in large transfers from USDC to USDT. According to the disclosed figures, the total amount of these asset transfers exceeded the $10 billion mark. At the same time, USDT’s market capitalization is approaching $80 billion, its highest level since May 2021.
Obviously, Circle’s efforts to try to limit the impact of this upheaval did not bear fruit. From this point of view, we can understand why the crypto firm is working to readjust its strategy to remain competitive.
Circle’s New Stablecoin Expansion Policy
With the rise of its competitor Tether, Circle seems to be making choices to maintain the growth of its stablecoin. These essentially consist of repositioning the USDC on other crypto platforms.
Last week for example, Circle announced that the USDC extension to the Cosmos Network interoperable blockchain platform. The company intends, once the project is completed, to make the USDC available, for the first time, on more than 50 blockchains compatible with the IBC protocol.
Circle hopes so “catalyze hundreds of millions of dollars of liquidity over the next few months in the Cosmos platform». This, trying to “rectify the challenges that users and appchains face”.
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