Tether Market Dominance Drops; Is USDC Taking Over?
Tether has dominated the stable market for the past three years, with a record high circulation of nearly $27 billion. However, the coin’s critics say that its lack of transparency is a liability to the crypto industry.
For the first time, Tether shed its market dominance to under 75%, according to the latest Coinmetrics figures. Some suggest better stablecoins in the market, while a centralized digital currency provider is a no go zone.
USDC Making Major Moves
Tether’s main competitor is Circle’s stablecoin, USDC. While USDT was facing significant market issues, USDC seems to be taking over as its dominance shoots to about 15%. According to business statistics, there is 5.1 billion USDC in circulation.
The integration of CirclePay and its stable currency with the new Blockfolio trading application will also help accelerate USDC adoption. The company claims USDC is issued by a financial institution that is regulated and backed by fully booked assets.
Allaire’s USDC is a kind of transparent corporate coin that promises in many ways. At the time of writing, the company had a market cap of nearly $5 billion and a daily trading volume of $2.7 billion.
Each month the CENTER Consortium issues a certification from the accounting firm Grant Thornton LLP to show that the outstanding USDC equals the bank amount meaning that the USD fully covers the asset. An audit is an independent review of data, whereas an assessment assesses and verifies its accuracy.
A year ago, USDC’s market cap was only $445 million. The tenfold growth is seen as the crypto market surges against uncertain times. USDC is set to devour Tether’s market dominance in 2021 as its use on DeFi increases.
Tether is a project that started as Realcoin and was founded in 2014 by entrepreneurs Brock Pierce, Craig Selars, and Reeve Collins. However, many in the industry – and in law enforcement – question its overall legitimacy.
Several ongoing investigations, including the US Department of Justice (DOJ) and the New York City Attorney’s Office, follow the possible irregularities surrounding the stablecoin. Amid the DOJ’s criminal investigation on Tether, the question is whether or not users use USDT to inflate the cryptocurrency market.
Like USDC, USDT is closely related to the stock market. USDC is used on the Coinbase exchange while USDT on Bitfinex, although both are covered on other exchanges. However, according to data analysis firm CryptoQuant, the two portfolios’ behavior on the two exchanges is very different.
Dai is the third-largest stable currency after the above two and has the advantage of being completely decentralized and secured by MakerDAO crypto collateral. Over the past year, Dai has also experienced explosive growth in terms of circulating supply.