Tether (USDT), the Stablecoin par excellence, could be living its last days as the benchmark within this type of cryptocurrency. Will it be displaced by the crypto USD Coin (USDC)?
In particular, Tether (USDT) is presented as a cryptocurrency whose value will always be equal to the value of the US dollar. The purpose of its creation lies in the ability to use a digital version of the dollar within the cryptocurrency market.
For its part, USD Coin (known by its symbol USDC) is a stablecoin that is pegged to the US dollar on a 1: 1 basis. All units of this cryptocurrency in circulation are backed by $ 1 that is held in reserve, in a combination of cash and short-term US Treasuries.
Is Tether’s reign coming to an end?
Specifically, a report by the crypto market research firm Messari, stressed that in the coming weeks it is feasible that for the first time, the share of the cryptocurrency will fall below 50%.
In fact, for Ryan Watkins, an analyst at Messari: «The reduction in the dominance of Tether (USDT) has a main reason. That is, greater use of the Stablecoin USD Coin (USDC)».
Furthermore, the analyst explained that USDC is emerging rapidly as Stablecoin, thanks to its growing role within decentralized finance (DeFi) applications.
Also, through a thread posted on Twitter, Ryan Watkins explained what: “More than 50% of the USDC supply is in Smart Contract. Which is equivalent to $ 12,500. Although, this percentage is not as high as DAI».
Equally: “USDC leads by a wide margin in dollar terms and has become DeFi’s stablecoin of choice, for now».
In this regard, Ryan Watkins raised a question: «The question going forward is to what extent DeFi will continue to depend on Stablecoins as it continues to grow. Centralized Stablecoins have always been a good gateway to bring liquidity to DeFi».
MakerDAO Loan, Compound and Aave, USDC Consumers
Ryan Watkins stressed that unsurprisingly, the MakerDAO, Compound and Aave lending protocols are the largest consumers of USDC with approximately 23% of the total supply.
Tether continues to dominate
Either way, while USDC shows an encouraging rally, Tether continues to dominate the Stablecoin market. According to figures from our in-house Crypto Online tool, USDT’s total capitalization is $ 62.5 billion. While that of USD Coin is located at 25,800 million dollars.
In closing, do you think Tether will continue to dominate USD Coin? Leave your opinion in the comment box.
I retire with this phrase by Gianni Versace: «It is good to have valid competition. Pushes you to do better».