Tether Dominates with Record Supply Beating Circle with Huge Margin

Summary:
USDC and Circle are two major issuers in the stablecoins ecosystem, with Tether's supply reaching an all-time high of 83.36 billion USDT and Circle's supply losing favor due to its association with the collapsed Silicon Valley Bank.

The crypto war in the United States has also affected the stablecoin ecosystem, with a clear rift emerging between the two major issuers. Tether’s total supply has reached an all-time high of 83.36 billion USDT, according to the company’s transparency report.

Industry specialist Will Clemente stated:

“The divergence from USDC is striking, reflecting easier access to treasuries for US-based USDC holders and regulatory uncertainty for US-based Circle. What was once a competitive advantage for USDC is now the opposite.”

Circle Lagging Behind

As a consequence of the broad crackdown on cryptocurrencies. Circle’s USDC is losing favour with institutions where it was formerly widely used. Circle likewise suffered greatly as a result of its association with the collapsed Silicon Valley Bank. When USDC de-pegged in early March, market confidence plummeted.

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The supply of USDC has decreased by about 50% since June 2022, when it was worth more than $56 billion. As a result, its market share has dropped to 22%, while Tether’s has risen to a commanding 64.5%.

As of this writing, the entire market cap for stablecoins is estimated by CoinGecko to be $128.9 billion. Even if its value has plummeted with the rest of the cryptocurrency market during the bear market, its market cap still represents over 12% of the whole market.

Investors Move to Stablecoins Amid Crackdown

On June 12th, Glassnode reported that the monthly outflow volumes for USDT and USDC from centralized exchanges had hit a new high. Investors have rushed to safer havens after the SEC launched two lawsuits and initiated enforcement action last week against exchanges, with Binance suffering the burden of the flight.

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Since analytics platforms use TVL (total value locked), which includes declines in the prices of crypto assets, Binance CEO Changpeng Zhao cautioned investors not to place too much confidence in Binance outflow data. The weekend saw a decrease in the volatility of the crypto market. Last day, market cap stability prevailed, hovering around $1.07 trillion.