USDC To Dethrone USDT: Arcane Research Report Reveals

In May, Terra’s UST lost its 1:1 dollar peg, one of the more upsetting events in the stablecoin market. The de-peg caused chaos and completely ruined Terra’s validity. Despite this, the USDT and USDC escaped the massacre.

However, several stablecoins are trying hard to fill the hole it left. According to this study, the USD coin (USDC) is leading this race. USDT is presently rated third in market capitalisation, while USDC is placed fourth.

USDC To Dethrone USDT

According to Arcane Research statistics, UDSC has a market capitalisation of more than $54.8 billion. The previous 30 days saw a 1.6% decrease. The market capitalisation of USDT is over $65.6 billion. It has also declined by 1.5% throughout the same period.

Arcane stated that the stablecoin bubble has been growing for some time. This worked well for the first four months of 2022 before a sharp trend reversal shocked the market.

USDC to dethrone USDT. Image: DefiLlama

According to the indicated growth rates, the USDC has the potential to overtake the USDT. While USDT’s growth rate has fallen by 28.7%, USDC’s growth rate has risen by 70.4%. If the current rate maintains, the USD currency will surpass Tether as the biggest stablecoin on October 10, 2022. USDC’s market value will exceed 61.3 billion.

Tether held a 47.5% market share at the beginning of 2022. USDC, on the other hand, has 25.8%. On the other hand, Tether’s dominance has fallen to 43.8% after the first half of 2022, while USDC’s has risen to 36.3%.

The USDT is about to fall

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USDC market cap at $54 Billion. Source: TradingView

While Arcane explains some critical criteria for why USDC will outperform Tether, there are still more factors to consider.

To begin with, Tether has been chastised for its lack of transparency on its investments and reserves. Furthermore, Tether’s audits are inconsistent. These variables further complicate Tether’s stance.

USDC, on the other hand, is more open about its reserves and is audited regularly. This advantages the currency immensely since it makes it easier for investors to trust.

Several nations are presently debating stablecoin rules. So it stands to reason that the coin with the most incredible audits and transparency will also have the most users.

However, because it is more centralised, USDC is more top-controlled. At the same time, USDT can only be traced through blockchain data. However, the stablecoin arms race is still underway, and USDC looks to be the winner.