USDT: Binance action leads to over $15 billion hole but the fight isn’t over yet

Circle [USDC] kept it Rope [USDT] On their toes in a battle for the supremacy of stablecoins since early 2022. Binance’s recent decision to convert other stablecoins besides USDT to Binance USD [BUSD] You dealt the USDC mission a fatal blow.

A few days after the stock market announcement, market signs started to reverse.

At the time of writing, USDT’s market capitalization is $15 billion greater than USDC. At the beginning of the year, there was a difference of more than $35 billion between them, with USDC advancing.

Interestingly, USDC played ‘catch-up’ games and drop The gap to about $10 billion in July. Now it looks like it could get worse for USDC as USDT has gained much more than before in the past few days.

At the time of writing, USDT has a market capitalization of $67.55 billion, while USDC has a market capitalization of $51.70 billion.

Finally, collapse?

The talk was about the collapse of the USDC Back Previously due to some high-risk lending. However, Circle CEO Jeremy Allaire was quick to quash the rumors. Similarly, Allaire came to reveal Stories of the last knife to the heart of the USDC.

In response to the talk about the demise of the USDC, Circle CEO said that Binance’s actions were not intended to harm the stablecoin. Instead, the decision will lead to more US dollar exchange flowing to Binance. He cited the limited use of BUSD outside of Binance as a reason for the USDC to gain more volume on centralized and decentralized exchanges.

While some metrics in the series agree with Allaire’s view, others disagree. A look at the active USDT addresses showed that there were a few drop. Glassnode reports that addresses have been reduced to 57,076 from 58,273 on August 6.

Source: Glassnode

In the case of USDC, active titles have fallen even more. On September 6, the number was 34,030, according to the on-chain analytics platform. At the time of publication it was decreased to 32365.

Source: Glassnode

Despite some negative implications, Aller’s opinion on more gear flow may be correct. This is due to the data on the string show up That the USDC achieved more than the USDT exchange volume between September 6 and September 7.

With this trend, it may be too early to conclude that USDT has won the stablecoin war.

As of press time, there has been no official response from Camp Tether. However, a look at Paolo Ardino’s Twitter showed that he supports the Binance action. Tether was CTO retweet The view reflects that it was the end of the USDC.

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