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The stablecoin sector has also been affected by the United States’ stance on cryptocurrency, with a noticeable split occurring between the leading two issuers.
Tether’s supply has surged to a record high of 83.36 billion USDT, as reported in the company’s transparency document. Industry analyst Will Clemente remarked:
“The divergence from USDC is notable, indicating easier access to treasuries for US-based USDC holders and regulatory ambiguity for US-based Circle.
What was previously a competitive edge for USDC has now turned into a disadvantage,” he added.
Tether Continues to Mint
Circle’s USDC was previously preferred by institutions, but amid a continuing industry-wide crackdown, the demand for the stablecoin is diminishing.
Additionally, Circle faced significant repercussions due to its exposure to the now-failed Silicon Valley Bank. USDC lost its peg during early March, leading to a substantial decline in trust.
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The supply of USDC has fallen by nearly 50% since June 2022, when it reached approximately $56 billion. Consequently, its market share has also suffered, plummeting to 22%, while Tether’s has risen to a dominant 64.5%.
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The overall stablecoin market capitalization currently stands at $129.3 billion, according to CoinGecko. This accounts for nearly 12% of the total cryptocurrency market capitalization, although it has also significantly contracted during the bear market.
On June 12, Glassnode reported that USDT and USDC continue to exit centralized exchanges, with both stablecoins achieving a monthly peak in outflow volumes.
The movement towards safety from exchanges, particularly Binance, has intensified following the SEC’s dual lawsuits and enforcement actions last week.
However, Binance CEO Changpeng Zhao advised investors not to overinterpret Binance outflow statistics from analytics platforms, as they utilize TVL (total value locked), which encompasses declines in cryptocurrency asset prices.
Crypto Market Overview
Cryptocurrency markets have stabilized over the weekend as consolidation persists. There has been virtually no variation in total capitalization over the past 24 hours, remaining at $1.09 trillion.
BTC prices have remained stable at $25,800, while Ethereum has slightly decreased to $1,735 at the time of this writing.
Predictably, BNB has experienced the most significant decline, having dropped 25% over the past week. Binance Coin was trading at its lowest price this year at $222, having fallen another 5% at the time of this writing.
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