USDC to surpass USDT as largest stablecoin? This report could be key
The much-talked-about fight between the stablecoins continues to see new daylight. Especially, with the ongoing feud between USD Coin (USDC) and Tether’s (USDT). Some analysts even say that the former might just flip the latter to gain the #1 spot.
But how true and feasible does this stand to be?
Dethroning the ruler
The crypto ecosystem entered the seven seas in 2022, and stablecoins were not left unphased.
To understand how stablecoins navigated the stormy market conditions and whether Arcane's stablecoin predictions for 2022 stand the test of time, click below:https://t.co/uL5tTWFQlT
— Arcane Research (@ArcaneResearch) July 26, 2022
The entire crypto space felt a negative impact from the failure of the algorithmic stablecoin UST and Terra’s native token, LUNA.
Top stablecoin projects like Tether’s USDT and Circle’s (USDC) remained stuck given the harsh rippling effect. Even at press time, the market couldn’t be considered as completely recovered.
At the end of Q2, the total stablecoin supply stood at $151.3 billion, down $35.1 billion, or 18.8%, over the last quarter; the largest quarterly drawdown in the history of stablecoins. Arcane Research’s latest report on stablecoins also shared a few insights to discuss the fall.
Of late, it looks like USDC is taking a run at the title of the top stablecoin in crypto. It stood at a market valuation of over $55 billion.
While USDT, at press time, had a market capitalization of $65.8 billion although decreased by 1.5%.
Now here’s the interesting narrative. As per the data released by Arcane Research, it predicted that USDC could surpass the largest stablecoin by market cap. Here’s a glimpse of the potential growth projections in 2022.
The analysis projected a leap from USDC to the top. Indeed, the report said that USDC would climb about USDT in market value sometime in October 2022.
Leading to this
USDC did indeed showcase some promising stats to support the aforementioned prediction. For instance, a month ago, it crossed Tether’s USDT by the number of daily transactions on the Ethereum blockchain.
Furthermore, Circle’s coin remains the most-used stablecoin in the transferring volume aspect. As per Dune analytics, USDC holds a share of 52.5% on this front. Tether only has a share of 21.4%.