- Circle’s USDC market share has dropped from 34.88% to 23.05% in the previous 12 months.
- Market share for the USDT stablecoin is now at 65.89%, up from 47.04% a year ago.
There have been shifts in the last year regarding the market domination of stablecoins linked to the US dollar. Tether USDT, however, has returned to its all-time high, according to statistics compiled by CoinGecko, while the majority of cryptocurrencies are on a negative trend.
Circle’s USDC market share has dropped from 34.88% to 23.05% in the previous 12 months. While Binance USD’s market share fell from 11.68% to 4.18%, Dai’s portion of the cryptocurrency market fell from 4.05% to 3.66%.
Favorable Political Climate
Meanwhile, USDT, Tether’s native currency, is on the rise. Market share for the stablecoin is now at 65.89%, up from 47.04% a year ago. Its market worth has increased to $83.1 billion, from $55 billion at its high, while USDC’s valuation has shrunk to $29 billion.
Circle CEO Jeremy Allaire recently blamed the crypto crackdown by U.S. authorities for the stablecoin’s decreasing market value in an interview with Bloomberg. The political climate in the US right now looks to be favorable for Tether.
With $3.3 billion in reserves stranded at Silicon Valley Bank, one of three crypto-friendly banks shut down by authorities in March, USDC depegged as a result of the U.S. financial crisis. The market’s immediate reaction to the announcement, despite Circle’s reassurances, caused USDC to depeg from the dollar.
Stablecoins have gained in popularity as the crypto industry has grown more integrated with the financial mainstream. More openness about stablecoin reserves in the digital assets market was recently called for in a study by the European Systemic Risk Board.
