A few weeks ago, USDC got overtaken in the stablecoin market in favor of USDT. The latter has since been on the rise. And some think it’s set to reign supreme in this market for quite some time. But risks remain.
USDT dominates the stablecoin market
Until a few weeks ago, USDC and USDT were vying for the top spot in the stablecoin market. From now on, there is no more match. USDT reigns supreme in the stablecoin market after dethroning USDC in the wake of the banking crisis.
Numbers don’t say otherwise.. Indeed, the market capitalization of USDT currently peaks around $82 billion. A performance that crypto had not achieved since the sinking of Terra-Luna in 2022.
At the same time, that of the USTC stablecoin failed to recover. This, since she almost rushed following the collapse of the SVB. Since these financial events, USDC’s capitalization has plunged nearly 36%.
One situation is undoubtedly at the root of USDT’s surge. The latter has indeed regained the trust of former users while conquering new ones. This, even though the craze for whales has recorded a marked decrease.
Will the USDC maintain its place?
The question that now arises is whether this return to favor of the stablecoin could be maintained for a long time. An affirmative answer is not obvious because beyond this apparent renewed interest remain risks.
Among these is the resurgence of scams related to USDT. Data from Dune Analytics, a data analytics platform in the Ethereum ecosystem, is quite telling on this.
Indeed, the platform notes that approximately $26.36 million worth of USDT was stolen. Figures that only cover the month of March 2023. Thus, many careless users have their assets stolen. This, via machinations like Approval Mining, Liquidity Mining and Sha Zhu Pans.
It is not easy to predict that the USDT will remain in first place in the stablecoin market. A crisis of confidence could once again harm the credibility of the asset while the bear market is still raging.
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