Can you hear the guns being loaded? That is the sound of the battle intensifying as there are only three stablecoins that maintain their place in the top ten cryptos by market cap. These were Tether [USDT]USD currency [USDC]and Binance USD [BUSD]†
It may seem like USDC is the clear winner compared to BUSD, but Binance’s stablecoin is also a heavyweight player. In addition, the statistics offered some fascinating insights into how these two stablecoins are performing.
Vitals look stable?
You would think it would go without saying, but circumstances have changed so at the time of writing, rest assured that USDC and BUSD were both still pegged to the dollar.
However, keep in mind that the market caps for both stablecoins have fallen and this was still in flux at the time of writing. The data showed that while BUSD’s market cap started declining around the end of February 2022, USDC’s market cap started declining sometime in early March of this year.
That said, USDC’s market cap was over 48.3 billion at the time of writing, while BUSD started rising above 17.1 billion at the time of writing.
Next, it is important to compare the offerings of USDC and BUSD exchanges to understand what investors are currently trying to do. This produced some fascinating results as we can see that while the supply of USDC and BUSD in exchanges has been declining since early 2022, there was more BUSD left in exchanges despite USDC’s higher market cap. This shows that stablecoin buyers have a much stronger preference for USDC.
However, are investors actually using the stablecoins they have? Comparing the rate of USDC and BUSD, we can see that both assets saw a sharp decline in inactivity.
This can be traced back to the recent crash of Bitcoin and Ether, when bulls step back to assess damage before buying new alts. However, it is important to note that at the time of writing, the difference in speed between USDC and BUSD was not too far off, with USDC seeing only 2-3 more daily address changes on average than BUSD.
Once a rising star among alts and stablecoins, investors are now wary as TerraUSD [UST] fell out of the top ten cryptos according to market cap list. At the time of going to press, the former stablecoin had lost 33.07% of its value in one day and was trading at $0.6122. It was the eleventh largest cryptocurrency by market capitalization.
This post Terra-fying war rages as USD Coin [USDC] and Binance USD [BUSD] fight it out
was published first on https://ambcrypto.com/terra-fying-war-rages-as-usd-coin-usdc-and-binance-usd-busd-battle-it-out/