Circle’s stablecoin USDC appears to be waxing strong as it surpassed Tether’s USDT in numbers of daily transactions on Ethereum for the first time, according to Nansen.
Alex Svanevik, the CEO of AI, highlighted on Twitter.
This is the most recent in a series of bad events for Tether. USDT continues to lead in terms of market value and daily trading volume. However, there is rising suspicion that USDT might lose its number one stablecoin title to USDC.
USDT perceived to likely crash like Terra
A few days ago, USDT lost its $1 peg after the Celsius Network declared that withdrawals will be halted. Following Terra’s spectacular collapse in May, it had also lost its peg. Likewise, there have been rising concerns that USDT is on the same crash path as Terra’s UST.
Eleanor Terrett, Fox Business Journalist reported how a crypto industry source had switched all of his stablecoins from USDT to USDC. She highlighted the industry’s fear over USDT losing its peg, as well as the similarities to Terra. USDT’s market cap dipped below $70 billion just a few days ago, and Tether’s CTO tweeted about a DDOS attack on Tether on June 18th. Tether has also been accused of holding Chinese Commercial Paper Holdings.
Meanwhile, USDC’s market value had increased by almost 1000% in over a year. It currently has a market capitalization of almost $55 billion and is a serious competitor to USDT.
Tether refutes and defends itself against rumor
Tether criticized and rejected claims of commercial paper holdings on June 16th. It cited the rumors as a means of inducing fear in already stressed markets.
It’s also worth noting that, while USDT was defeated by USDC on Ethereum, it has more tokens on Tron than Ethereum. To provide greater transparency, Tether informed Euromoney today that it is willing to agree to a full audit of its reserves by a Top 12 firm. Tether hopes that these measures are enough to assuage fears of a Terra-style collapse.
