USDC vs USDT: USDC Comes Closer To Tether Market Cap

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The USDC vs USDT scenario is gaining momentum with news of USDC steadily progressing ahead at a pace that may soon replace tether as the third-largest cryptocurrency by market cap

In the middle of uncertainty surrounding stablecoins triggered by the recent Luna crypto crash, and USDD Depeg, the news of USDC gaining momentum has proven instrumental in restoring the faith of investors in the stablecoin domain.

As per recent stats, as fears mount about the damage of a USDT depeg, USDC is gaining an upper hand in the current crypto market with its market cap getting closer to that of Tether.

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USDC Continues To Gain On Tether Market Cap

Several crypto investors and enthusiasts are treading with extreme care while exploring stablecoin trading, post the dramatic fall of UST and USDD in the past few months.

The recent fears surrounding Tether have some looking towards USDC as an alternative contender that can help them survive the current crypto winter.

As a result, the CoinGecko data suggests that USDT has registered a notable drop in its market cap, which is down by nearly $15 billion from its all-time high of $83 billion. USDC, however, has maintained its market cap of around $54 billion, compared to USDT's $67 billion.

Alongside the market cap, USDC transactions on Ethereum have now surpassed that of USDT.

However, it might be too early to assess the situation at large. The data further weighs in to add that tether's USDT is still attracting high trading volume, which is another crucial parameter to consider while assessing the ranking of cryptocurrency at large.

Tether's 24 hour volume is $49 billion, compared to USDC's $5.2 billion.

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Why is USDT Down?

While USDT remains close to the $1 peg, it has recorded a sharp market cap decrease.

The current crypto bear market is one of the leading reasons resulting in the crashing of central cryptocurrencies including stablecoins.

However, several other factors including rumours surrounding Tether being backed by Asian and commercial holdings have also been instrumental in impacting its overall market dominance.