Bitcoin ETF

USDC

Gains

BlackRock

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/circle-usd-gains-ground-against-tether" rel="noopener noreferrer nofollow">Circle USD Gains Ground Against Tether</a><br></p>
<p style="text-align: justify">Circle USD (USDC) is steadily increasing its influence in the stablecoin market, posing a significant challenge to Tether USD’s (USDT) long-established dominance. Regulatory changes are threatening Tether’s stronghold, particularly in key markets, directly affecting its status as the leading stablecoin.</p>
<h2 id="what-is-driving-usdc-s-growth">What is Driving USDC’s Growth?</h2>
<p style="text-align: justify">Launched in September 2018, USDC entered a market largely controlled by USDT. Over time, USDC has gained traction among <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank">investors</a> who are wary of Tether’s reserves and its ability to redeem. Presently, USDC’s market value stands at $33.34 billion, ranking it as the sixth most valuable cryptocurrency and the fifth largest altcoin. In comparison, USDT holds a market value of $111.22 billion, making it the third-largest cryptocurrency and the second-largest altcoin.</p>
<p style="text-align: justify">Despite USDT’s lead in trading volume on centralized exchanges, USDC has carved out a stronger presence within decentralized finance (DeFi), a growing sector of the cryptocurrency market. This indicates a shifting dynamic where USDC is gaining more trust and utilization.</p>
<h2 id="how-are-regulatory-changes-affecting-the-market">How Are Regulatory Changes Affecting the Market?</h2>
<p style="text-align: justify">Circle’s strong political connections in the US provide it with a significant edge over Tether. Regulatory developments outside the US also present challenges for USDT and open up opportunities for USDC to expand its market share. For instance, Kraken, a major global cryptocurrency exchange, is considering removing USDT for European users due to concerns linked to the European Union’s MiCa regulations. This move could influence other exchanges and lead to significant shifts in the stablecoin market.</p>
<p style="text-align: justify">Following Kraken’s lead, the OKX exchange has also announced the removal of most USDT trading pairs. Such steps point to an emerging preference for USDC over USDT. The potential exclusion from major platforms like Kraken and OKX could severely impact Tether while simultaneously boosting Circle’s USDC.</p>
<p style="text-align: justify">Moreover, asset management giant BlackRock has flagged risks associated with stablecoins in its spot <a href="https://en.bitcoinhaber.net/bitcoins-600-day-bull-run-potential-highlighted-by-crypto-analyst" rel="noopener noreferrer nofollow">Bitcoin</a> ETF applications to the SEC, specifically highlighting concerns about Tether’s reserves and Circle’s ability to maintain its US dollar peg. These concerns underscore the broader apprehensions regarding Tether’s stability and transparency.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Increased regulatory scrutiny is affecting Tether’s market position.<br> – Major exchanges like Kraken and OKX are moving away from USDT.<br> – USDC is gaining a stronger foothold in both centralized and decentralized markets.<br> – Concerns about Tether’s reserves and stability are influencing market dynamics.</p>
<p style="text-align: justify">In conclusion, as regulatory pressures mount and investor preferences evolve, Circle USD (USDC) is poised to further challenge Tether’s dominance in the stablecoin market. The shifting landscape suggests a growing preference for stablecoins with greater transparency and regulatory support.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/circle-usd-gains-ground-against-tether" rel="noopener noreferrer nofollow">Circle USD Gains Ground Against Tether</a></h5>

Circle USD Gains Ground Against Tether

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