USDC and USDT Sustain Tight Stablecoin Dominance Contest

Data from Cryptoquant, the on-chain data platform, reveals a close contest between USDC and USDT stablecoins in terms of dominance. According to a Cryptoquant analyst, the market capitalization share of USDC on the ETH chain is 43.78%, while that of USDT is 44.60%.

The USDC stablecoin became a victim of the ongoing banking crisis in the United States when its relationship with the now-defunct Silicon Valley Bank implied a loss of value. A Cryptoquant review showed that the Circle-owned stablecoin coin had lost up to 7.06% of its value since the crisis began.

Contrary to the struggles of USDC, the direct competitor, USDT, has gained about 6.2% during the same period, reflecting what a Cryptoquant analyst describes as a “stablecoin war”. The fall and rise in the value of both stablecoins suggest a transfer of investments from one stablecoin to the other.

USDC and USDT are the most popular stablecoins. They represent the top echelon of stablecoins in the cryptocurrency market. Under the current circumstances, USDT appears to have a slight edge over USDC, considering that it is the most capitalized stablecoin. However, USDC’s higher level of transparency is a plus and has endeared it to many stablecoin users.

A large segment of the crypto community appreciates the competition between these two entities. They consider the scenario a self-check mechanism that pushes developers to improve their products. According to the Cryptoquant analyst, it is a development that is sustainable over a long period.

The analyst noted that the competition between the leading stablecoins would also encourage the teams behind them to pursue improved security and efficiency of their product for users’ benefit. Hence, there could come a time when ‘stable’ stablecoins would be handed to the community.