USDC news – Can USDC really compete with Tether (USDT)?

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Till a few months back, the only stablecoin which had any kind of prominence was tether (USDT). However, the reputation of Tether (USDT) has been a bit sketchy. There are rumors that tether (USDT) is not backed by the same dollar amount. Even though the developers of the coin refuted the allegations and often released partial proofs but the doubts still persist. Moreover, in recent times, there is been immense volatility in tether (USDT). Due to this very reason, many investors are not using tether (USDT) in order to trade in cryptocurrencies.

Can USDC really compete with Tether (USDT)?

Ever since the volatility in tether (USDT), there has been the advent of quite a few stablecoins. This has led to increased competition among stablecoins as well. One coin which is just a few months old is USD coin. It is known by the name of USDC. However, it has been able to gain quite a bit of prominence as well.

It is created by Coinbase and circle. That is why the founders of this coin itself are pretty reputed and trustworthy. This is one of the main reasons why it is gaining so much prominence. Additionally, recently Binance has stated that it will be listing USDC. This means that the credibility of USDC increases manifold. Binance is the largest cryptocurrency exchange when you take into account the volumes. This is one of the main reasons why the prominence of USDC will increase manifold once it starts trading on Binance.

This however does not mean that USDC will be directly able to compete with tether (USDT). When you look at tether (USDT), you will realize that in spite of all the volatility, the daily volumes in tether (USDT) can be to the tune of $ 4.7 billion. Similarly, when you look at the volumes in USDC, its around $ 16 million mark. Thus, when you compare the volumes of the above two stablecoins, they are wide apart. This can, however, change with the listing on Binance. Due to the fact that Binance boasts of such large amount of daily volume, it can easily propel the volumes in USDC even higher.

Binance announced that it will be listing USDC against Bitcoin (BTC) as well as its own coin Binance coin (BNB). Thus, users will be able to easily purchase this stablecoin in order to trade in cryptocurrencies.

After the release of this news tether, USDT fell below $ 1 mark. This is exactly the volatility which the traders, as well as cryptocurrency investors, are trying to avoid. The more it stays below $ 1 mark, the more will be the migration from tether (USDT) to USDC. This is the reason why in the coming few months, there can be a war for market share in the stablecoin space. It remains to be seen whether USDC is able to come anywhere close to tether (USDT) or not.

About Riddhi 224 Articles
I am an electronics engineer and follow the crypto space closely.

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