What You Need to Know About USD Coin (USDC) Right Now!
Although TerraUSD was not the largest stablecoin, it was ranked third and had a market valuation of about $19 billion until it was quickly devalued.
As a result, the capital had to find a new location. Tether (USDT-USD), the number one stablecoin at the time, seemed to be the main beneficiary of this movement.
According to Blockworks, Tether had $140 billion in trading volume on Wednesday, when the TerraUSD dropped to about $0.60.
Those proportions are still in use today. Market capital paints a different narrative, though.
As a result, Tether's value plummeted from $83 billion before Terra's demise.
The figure now stands at $75 billion.
On the other side, USD Coin (USDC-USD) is suffering exactly the reverse. The market capitalization of the second-largest stablecoin has increased from $48.5 billion to moreover $50 billion in the same period.
In spite of this, the dollar pegs of both Tether and USD Coin have been maintained beautifully.
Instead of utilizing paper currency, you may want to think about using U.S. Dollar coins.
Stablecoin Tether is primarily dependent on short-term corporate debt and bank C.D.s in addition to Treasury securities, while USD Coin is heavily dependent on actual USD.
Whether or if the Securities and Exchange Commission or the Treasury Department takes issue with Tether's reserve mix remains to be seen.
Analysts from Cathie Wood's ARK Invest this morning's weekly newsletter stated that:
"As the Terra blowup prompts more stringent regulation of crypto in general and stablecoins in particular, we believe that more secure and conservative blockchains like Bitcoin and Ethereum will continue to gain market share in the crypto market ecosystem."
