Tether's USDT capitalization has updated another high
Date: 2023-07-31 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Since the beginning of 2023, the stablecoin market has undergone significant changes.
The supply of USDT is growing steadily, reaching record levels. USDC's influence, meanwhile, is waning amid growing skepticism about its reserves, especially after the March collapse of the Silicon Valley Bank.
USDT strengthens its position
According to the analytical platform Glassnode, over the past year, Tether's market capitalization has grown by about 30% - at the time of writing it is $83.8 billion. USDT's dominance in the stablecoin market has soared to 68.87%.
The company's revenues have also increased significantly. At the end of the first quarter of 2023, Tether's net profit amounted to $1.50 billion: some market participants believe that these funds will be used to buy bitcoin (BTC).
USDC capitalization fell to a two-year low
In early March, USDC suffered a major blow after the company behind it, Circle, announced that it was holding $3.3 billion in reserves at the bankrupt Silicon Valley Bank. During the day, the price of the asset dropped to the level of $0.87, and worried investors rushed to massively buy back tokens and exchange them for other stablecoins.
A month after the SVB fiasco, the volume of USD Coin on the Ethereum network fell to its lowest level in the last two years. Despite some recovery, it is still 50% lower than in early March. The circulating supply of the stablecoin decreased by 37% to $26.32 billion.
