• USDC stablecoin has experienced significant outflows since the closure of Silicon Valley Bank in March. Investors are fleeing to USDT, causing its market cap to surge.
• USDC’s market capitalization has dropped 23% and is now at $33 billion, backed by short-term government bonds administered by BlackRock and cash reserves.
• Tether (USDT) has become the largest stablecoin with a market cap of $79.6 billion, holding a 60% market share among stablecoins.
USDC Outflows Reach Over $10B
USDC stablecoin has experienced significant outflows following the closure of its key reserve banking partner Silicon Valley Bank in March. As investors have fled from other stablecoins into Tether (USDT), USDT’s market cap has surged to a 22-month high in market share.
USDC Market Cap Drops 23%
Circle’s USD coin (USDC) token net outflows have surpassed $10 billion since March 10th when regulators closed down reserve banking partner Silicon Valley Bank, resulting in USDC losing its peg temporarily and its market capitalization dropping below $43 billion by 23%.
Tether Surges Ahead
The current reshuffling within the stablecoin sector due to uncertainties in the banking sector and increasing regulatory scrutiny has seen USDT’s market capitalization rise from $71.5 billion to $79.5 billion since March 10th, with TUSD also gaining popularity as an alternative to BUSD that was stopped by New York regulators earlier this year.
Tether Dominates Stablecoin Market Share
As investors increasingly move towards Tether, USDT now holds a 60% share of the total stablecoin market capitalization with a value of 79.6 billion dollars – making it the largest stablecoin in circulation today.
Overall, USDC outflows have been significant following SVB’s collapse, leading many investors to flock towards Tether as a safer option for their funds amidst increasing regulatory pressures on the crypto industry and uncertain banking conditions worldwide.