Will the “USDC” displace the “USDT” coin from the throne of the stablecoin?
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Answer Will the “USDC” displace the “USDT” coin from the throne of the stablecoin?
Information from analytical sites shows that “USDC” may become the preferred stablecoin in the crypto market, instead of USDT, with the increase in the supply of USDC in the recent period, while the USDT is falling.
What is USDT currency?
The digital currency “Tether USDT” is considered the most famous stable digital currency and is mainly related to the dollar currency. It is a currency that belongs to the category of stable currencies, where its value is equal to one dollar in all financial transactions from trading, selling, buying and transferring.
The currency is mainly used for purchases of other cryptocurrencies, and transfers between different parties around the world.
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Tether retreat
The total supply of Tether was flat at its highest value, at about $83 billion in May, but it has recently fallen to a market value of $73.25 billion at the time of writing.
Conversely, the market value of the USDC currency jumped by approximately 7.5% from $49 billion to $53 billion.
Tether is backed by only 40% of the cash, and the remaining 60% are various financial instruments such as commercial paper, secured loans, and Treasury bonds, this support is more risky than the USDC backing.
While USDC is backed by a group of investors such as cryptocurrency exchange CoinPass, financial technology company Circle, and many other institutions, who have developed a financial policy consistent with the laws of the United States of America.
Therefore, USDC is a fixed-value storage currency, regulated by official laws, where USDC is more regulated than USDT.
This stability shown by the USDC makes it the best option for investors at the moment, especially in light of the fear of collapses similar to what happened with UST.
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