Data Suggests USDC May Soon Replace USDT As Stablecoin Favorite

On-chain data analytics site Glassnode disclosed today that world’s second largest stable coin USDC is gaining traction as crypto investors seem to prefer it over USDT. This is evidenced in the total number of supply the coin gained from last month alone.

USDC seems to be coming for USDT’s position

As of January 2021, USDC had a $4.1 billion market cap, but the coin has done over 1000 percent and now stands at over $55.27 billion. Glassnode analysis showed that since the beginning of May 2022, total stablecoins redemptions summed up $9.92 billion.

From the start of May till now according to the analysis, USDT saw the largest redemptions of -$13 billion, then DAI with -$2 billion, owing to investors closing out leverage, or due to liquidation. Meanwhile USDC’s market cap rose by a whopping $5 billion in less than two months.

The total capitalization of the top 4 stablecoins (USDT, USDC, BUSD and DAI) have also now surpassed Ethereum’s market cap by $3 billion as shown in the analysis. These events have labeled the staggering rise of USD stablecoins as the account and quote asset’s unit.

Some other related factor that might have helped boost USDC is the recent FUD going on with USDT. USDC’s issuer Circle is also known to be a respecter of the law as opposed to Tether which has had several legal troubles.

USDC issuer Circle to launch new euro-pegged token

Circle, which is the issuer of dollar-pegged USDC, will be introducing a new token by the end of June, the Euro Coin (EUROC). The new coin is to be backed by the single European Currency, just like its dollar counterpart, USDC.

Jeremy Allaire, the CEO and co-founder of Circle, pointed out that there is demand for euro-pegged coins and Circle would assist in creating safe and “interoperable value exchange worldwide”.

Circle’s statement read,

Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world’s most trusted digital currencies.