USDC Listed on More Crypto Exchanges; Tether’s Dominance looks Threatened
Although Bitcoin is still most popular crypto, it’s no longer the sole monopoly in the crypto sector. In the past, investors and traders had to first buy Bitcoin before trading other altcoins. But, that’s no longer the case.
It took the innovation of blockchain developers and visionaries who built Tether to break that monopoly in 2015. Today, not only is the crypto world enjoying the benefits, we’re increasingly seeing a variety of stablecoins deployed in the industry.
Unfortunately, Tether isn’t one of those. If anything, it appears that Tether is facing considerable volatility in the markets, no thanks to the birth of multiple stablecoins. One of these stablecoins that could see off the supremacy of Tether is the USD Coin (USDC). USD Coin is a brainchild of Coinbase, its partners and Circle.
On Thursday, the new crypto coin received a significant boost in the form of Binance’s announcement that it will list the coin on its platform last week. The announcement stressed that Binance will be offering two USDC pairs –one for Bitcoin and its own Binance Coin (BNB).
The exchange further dampened any optimism that Tether may have nursed by insisting that the month-old USDC is already in talk with top notch firms to audit and release its end of the month balance statement of both USDC and USD balances.
While USD Coin was created a few months ago, it is gaining so much popularity, and adoption, essentially making it an alternative to USD Tether (USDT).
Although the daily trading volume of USDT still outstrips USDC’s $16 million, it’s becoming increasingly clear that the new coin could take over if it continues with this spate of growth, thanks to its listings on both Coinbase and Binance.
The continued growth of USDC and possible quashing of USDT are based on the project’s growing level of transparency and audits which is projected to be nonstop.
Meanwhile, one issue that may prevent, USDT’s recovery is the centralization of its debit cards in one company. If Tether fails to recover from its volatility and lacks the capacity to sustain its dollar peg, we just might see the USDC taking over.
USDT’s volatility is traced to the drop in value it experienced during the crypto crash where its value plummeted to a record low of $0.964. Whereas, competing coin USDC has made a bullish rise to a record peak of $1.06.
Currently, USDC is still trading at over $1, while the USDT is under it. Experts’ predictions indicate that the collapse of Tether could send a shockwave through the crypto markets.
But there is a new lease of life in the crypto market with the presence of USDC which will compete vigorously with USDT that has for a long time dominated the market.