- USDC re-emerges with notable performance as the stablecoin market picks up pace.
- The stablecoin has outperformed USDT since the last quarter.
- USDC has recently dumped support for the Tron blockchain.
Stablecoins, as practical alternatives to fiat, play a vital role in the crypto industry by promoting stability and ease of use for investors in volatile markets. Two leading issuers, Tether and Circle, have largely dominated the scene with their respective stablecoins, USDT and USDC. However, challenges in the past year set a rocky path for the latter, positioning USDT as the leading stablecoin in the industry.
However, the re-emergence of USDC suggests a seismic shift, threatening to overthrow Tether’s position.
USDC vs. USDT: The Battle of Titans
According to a February 26 Coinbase report, the supply of USDC has surged by a healthy 14.3% since December 1, 2023.
Sponsored
Valued over $3.5 billion, this increase brings USDC’s total market cap to $28 billion, recuperating its November dip below the $25 billion mark.
USDC’s surge represents a significant outperformance of Tether’s USDT, which only notched up 8.7% in market cap to $97 billion within the same timeframe.
Although USDT still holds the larger 71% share of the stablecoin market, the report noted that Circle’s USDC is becoming an increasingly popular choice in the non-US markets, recording a 5x increase in its share of spot and derivatives activity.
This is fueled by a myriad of factors, such as its re-list on Binance and a Coinbase-based market maker incentive program, which have boosted the stablecoin’s liquidity and market depth.
Coinbase’s findings charge an optimistic course for Circle, which was recently thrust into the spotlight for ending support for a popular blockchain.
Circle Dumps Tron
Over the years, blockchain network Tron has gained a reputation for hosting the industry-leading stablecoins, USDC and USDT.
However, in a surprising twist on February 20, Circle announced the decision to cut USDC’s support for the network, which hosts over $335 million USDC out of its entire $28 billion circulation,
“This action aligns with our efforts to ensure that USDC remains trusted, transparent and safe - characteristics that make it the leading regulated digital dollar,” stated Circle.
The stablecoin issuer encouraged retail holders to move assets to other supported networks and provided institutional holders until February 2025 to move or redeem the tokens.
Circle and Tron have had regulatory run-ins in the past year, and the issuer’s complete exit from the network is likely not isolated.
Find out more about the implications of Circle’s exit from Tron:
Here’s What Circle Pulling USDC from Tron Means for You
Former Terraform Labs CEO will fight tooth and nail to evade the SEC’s lawsuit. Read more:
Do Kwon Plots SEC Trial Evasion in String of Delay Tactics
