USDC lags behind Tether in terms of market cap to become first on Ethereum
There have always been battles lately between the two most popular stablecoins, USD Coin (USDC) and Tether (USDT). But recently USDC is creating a notable milestone as it surpasses Tether on the Ethereum network in terms of the total supply.
Since 2016, Tether seems to be the best stablecoin, the most popular. This is after its market share with BitUSD and NuBits (USNBT). Since its launch in 2014, Tether has been operating on Omni.
However, it later came into the limelight when BitUSD and NuBits lost their losing users and dollar pin, causing them to fade into obscurity.
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In 2018, USDC came into the picture as a solid competitor to Tether. While Tether appears to be under a cover due to some uncertainties with its support, USDC appears with more transparency and adequate regulation.
The current offering of USDC and USDT on Ethereum is: 40.6 billion and 39.82 billion respectively. This now puts USD Coin ahead of Tether on the network.
However, Tether is still the most notable stablecoin with a total supply of 78.5 billion tokens. In addition, the asset has approximately 38.7 million tokens on the Tron network, representing almost half of its total supply. Tether tokens are also available on Solana, BSC, Polygon, Huobi ECO Chain, Avalanche and other 13 Chains, as well as L2 solutions.
Contributing factors to Tether (USDT) fall
Over the years, the gradual decline of Tether’s public imagery has been attributed to many doubts surrounding its support. Eyebrows have been raised about both the stablecoin’s collateral and the management strategy of the reserved funds.
In order to dispel the numerous doubts, double consolidated reserves were issued. These reports came in 2021 from the accounting firm Moore Caymon about Tether’s financial reserves.
The stablecoin’s latest financial report revealed its holdings of $30.8 billion in an obscure commercial paper. This was in addition to other assets that support USDT.
USDC, for its part, can boast of a total supply of 45.7 billion tokens, spread over 21 different chains and L2 solutions. In addition, USDC has two major issuers; Circle and Coinbase, a digital payment service. In addition, Circle is backed by China Everbright Bank, Bitmain and eight other companies.
The Circle shows high transparency about its reserves; it is still below the expectation of some critics. After an August 2021 announcement by Emile Choi, the president of Coinbase, there was a full shift to cash and US Treasuries in USDC reserves.
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An independent accountant’s report by Grant Thornton showed that the implementation of the shift took place on October 27, 2021.
On their centralized stablecoins, the top three remain USDT, USDC and BUSD. However, there is an increase in the proliferation of decentralized stablecoin versions.
USDT Stabilizes on the Daily Chart | Source: USDT/USD on TradingView.com
Featured image from Pixabay, chart from TradingView.com