USDT led the stablecoin market after recent market volatility. Despite recovery, network growth of all stablecoins declined.
Due to the recent events surrounding SVB and Circle, the stablecoin market has been subject to a lot of volatility in recent weeks. After the dust settles, Tether [USDT] came out on top when compared to other stablecoins.
USDT reigns supreme
According to a March 21 tweet from CZ, USDT is making headway in terms of market cap compared to Binance USD [BUSD] and USD currency [USDC]. Despite BUSD’s fiat asset support and regulatory compliance, growth has stalled. In contrast, the status of USDT has continued to improve despite market volatility.
#BUSDthe most fiat-backed stablecoin, controlled by big audit firms, regulated by the NYDFS, was forced to shut down (no new coin).
USDC is also shrinking in market cap due to bank closures.
USDT is growing. pic.twitter.com/q5OYQdpAtW
— CZ 🔶 Binance (@cz_binance) March 21, 2023
A sign of USDT’s expansion would also be the significant amount of USDT that Tether was minting.
According to data from Lookonchain, Tether has hit $1 billion USDT on the Tron [TRX] network and $5 billion USDT on the Ethereum [ETH] network at the time of going to press. This significant increase in USDT supply suggested that there is strong demand for the stablecoin, and the addition of such a large amount is unlikely to negatively impact it.
Tether struck 1B $USDT on again #Tron just now.
Tether hit a total of 5B $USDT on #Tron And #Ethereum in the last 7 days.https://t.co/cGSfpbzTbJ pic.twitter.com/LqXn1paym2
— Lookonchain (@lookonchain) March 21, 2023
Despite this, USDC still captured a large share of the market in terms of volume distribution as it accounted for 66.1% of all stablecoin volumes at the time of writing. This dominance may play a role in USDC’s resurgence after the SVB fiasco.
Circle, the publisher of USDC, has started to focus on the European market.
Circle issued a statement on March 20 regarding its views on the European MiCA regulation. MiCA is a policy framework that aims to unify EU crypto regulation that can help further institutional adoption of crypto. Circle’s EU director believes major European banks will soon be rolling out crypto assets.
Circle EU Director: With MiCA launched, I expect major European banks to roll out crypto-asset services in the next 48 months, whether for custody, exchange or issuance of e-money or asset-referenced tokens, in the colloquially referred to as stablecoins.…
— Wu Blockchain (@WuBlockchain) March 21, 2023
If Circle makes progress on cooperation with these banks, it would greatly improve USDC’s situation.
The stablecoin sector has a long way to go. While these stablecoins may have recovered from recent market volatility, their declining network growth suggests there is still room for improvement.
This post Where USDT, USDC, BUSD stand as the stablecoin race accelerates
was published first on https://ambcrypto.com/where-usdt-usdc-busd-stand-as-stablecoin-race-accelerates/