Stablecoin

Bitcoin ETF

USDC

BlackRock

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/circle-usd-challenges-tethers-dominance-in-the-stablecoin-market/" data-wpel-link="internal">Circle USD Challenges Tether’s Dominance in the Stablecoin Market</a> 
Circle USD (USDC) continues to increase its market share, challenging Tether USD’s (USDT) long-standing dominance. Regulatory developments threaten Tether’s position in key markets, directly challenging the largest stablecoin’s status. 
<h2 style="text-align: justify" id="strong-usdc-s-growth-and-market-presence-strong">USDC’s Growth and Market Presence</h2> 
Launched in September 2018, USDC entered the stablecoin market, which was heavily dominated by USDT. Over the years, USDC quickly gained acceptance among <a href="https://finance.coin-turk.com/" data-wpel-link="external" target="_blank" rel="nofollow noreferrer">investors</a> concerned about Tether’s reserves and redeemability. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-352893" src="https://coin-turk.com/wp-content/uploads/2024/05/Altcoin-Tether-ve-USDC-scaled.jpeg" alt="" width="2560" height="867"> 
Currently, USDC’s market value stands at $33.34 billion, making it the sixth most valuable cryptocurrency and the fifth largest altcoin. In contrast, USDT has a market value of $111.22 billion, making it the third-largest cryptocurrency and the second-largest altcoin. Despite this, USDT maintains its lead in trading volume on centralized exchanges, while USDC has a stronger presence in decentralized finance (DeFi). 
<h2 style="text-align: justify" id="strong-regulatory-pressures-and-market-dynamics-strong">Regulatory Pressures and Market Dynamics</h2> 
Circle’s strong political presence in the US gives it a significant advantage over Tether. Regulatory developments outside the US also pose challenges for USDT and create opportunities for USDC to increase its market share. For example, Kraken, one of the world’s largest <a href="https://en.coin-turk.com/tension-rises-between-crypto-companies-and-regulators-following-sec-lawsuits/" data-wpel-link="internal">cryptocurrency exchanges</a>, is considering removing USDT from its platform for European users due to concerns related to the European Union’s MiCa regulations. Kraken’s move could set a precedent for other cryptocurrency exchanges and potentially lead to significant changes in the stablecoin market. 
Kraken’s consideration of removing USDT follows a similar move by the OKX exchange, which recently announced the removal of most USDT trading pairs from its platform. These moves indicate a growing trend towards preferring USDC over USDT. The potential loss of key markets like Kraken and OKX would be a significant blow to Tether, while the capital shift from USDT to USDC could provide a substantial advantage to Circle’s USDC. 
Additionally, asset management giant BlackRock highlighted risks related to stablecoins in its spot Bitcoin ETF applications to the SEC, citing concerns about Tether’s reserves and Circle’s ability to maintain the US dollar peg. Such concerns reflect broader worries about Tether’s stability and transparency. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/circle-usd-challenges-tethers-dominance-in-the-stablecoin-market/" data-wpel-link="internal">Circle USD Challenges Tether’s Dominance in the Stablecoin Market</a></h5>

Circle USD Challenges Tether’s Dominance in the Stablecoin Market

Table of Contents

COINTURK NEWS

Other articles published on May 18, 2024

Tezos Price Surges Despite Binance Delisting, Rides Wave with DOGE and Raboo in Market Recovery

Steve Cohen’s Point72 Invests $77.5 Million in Bitcoin ETF

BNB Set To Hit New ATH In June? Crypto Whales Are Loading Up On Rollblock and Solana For Altcoin ...

LayerZero Identifies Over 800K Potential Sybil Addresses

Bitcoin Price Predicted To Rise Due To 'Demand And Supply Dynamics,' Says Analyst As King Crypto ...

Whopping 97% Transaction Count Plunge Faced by Shibarium, What's Happening?

Join our free newsletter for daily crypto updates!