The latest data from CoinGecko shows that the market capitalization of the stablecoin USDT has surged to nearly $75 billion, marking the highest level since May 2022. The market cap of USDT is twice that of USDC, even though USDC has resolved recent issues and is pegged to the US dollar. The aftermath of the SVB bank run indicates that investors are increasingly choosing USDT.
According to Glassnode, the dominance of USDT has skyrocketed to 58.1%, the highest level since mid-September 2021.
In contrast, the dominance of USDC has dropped from around 38% last summer to around 30%. Additionally, the market cap of BUSD has plummeted from $16 billion on February 13 to $8.3 billion.
Stablecoins have become increasingly popular in recent years due to their stability and the ability to trade without the volatility that comes with other cryptocurrencies. They have also become a popular tool for traders looking to move funds quickly and easily across different exchanges.
The surge in USDT market capitalization may be attributed to several factors, including the fact that USDT is the most widely accepted stablecoin across multiple exchanges, as well as the recent scrutiny of USDC’s regulatory compliance.
While the market for stablecoins continues to evolve and mature, it remains to be seen how USDT and other stablecoins will fare in the long term. Nonetheless, the rise of USDT’s market cap is a clear indication that it remains a dominant force in the crypto market.
