USDC is gaining demand while USDT facing troubles

During a Crypto Winter, investors will typically store a portion of their bull market gains in stablecoins to weather the storm. But, over the last two months, that bearish behavior has played out extremely differently for the two largest stablecoins by market capitalization: Tether (USDT) and US Dollar Coin (USDC). In order to maintain value stability and reduce fluctuations, stablecoins are a subset of cryptocurrencies tied to an external reference point, such as the US dollar. Most often, stablecoins are backed by assets like gold or cash to make sure there are enough reserves to keep the peg. USDT Problems On the other hand, USDT dropped to around 95 cents earlier this month and has spent the majority of the last two weeks trading at 99 cents or higher. It remained at roughly $0.999 on Monday, or $0.1 less than its aim. Since May 10, it hasn’t been worth $1 on cryptocurrency exchanges, according to CoinMarketCap. In an email to Barron, a Tether representative stated that the price of USDT dropping below $1 on cryptocurrency exchanges “does not mean USDT has violated its peg.” The Demand for USDC For USDC, the run has been exceptionally strong. Circle’s stablecoin has accomplished a new record high 28 times in the last 50 days. In actuality, it has been doing so daily since June 15 till June 29. The difference between USDC and Tether was only roughly $12 billion on Tuesday afternoon. Since the fall of 2020, it hasn’t been smaller than that. Now, USDC might catch up to Tether if its market cap increases by about 21%; this could happen sooner if Tether keeps losing momentum. But all of this comes with a very significant warning: It is dangerous to think that an asset’s previous performance is a guarantee of what it will do in the future, especially now. Tether to launch stablecoin tied to the pound According to Tether’s announcement, the company will introduce GBP-pegged Tether coins in the first few days of July. The introduction of GBP₮ demonstrates Tether’s commitment to developing stablecoin technology and offering the biggest and most liquid stablecoins to international markets. GBP₮ will increase the global dominance of the British Pound Sterling and open up a market for USD and EUR in terms of foreign exchange. Additionally, it will serve as a gateway into the decentralized finance ecosystem. __________________________ BitYard Exchange Business Request: media@bityard.exchange BitYard Telegram Communities BitYard News & Events — https://t.me/BITYARDNEWS English — https://t.me/BityardEnglish --- USDC is gaining demand while USDT facing troubles was originally published in BitYard Token Insight on Medium, where people are continuing the conversation by highlighting and responding to this story.
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