It is probably too late for USDC or any other stablecoin to catch up with USDT. This is the view of Adam Back, the inventor of hashcash and co-founder/CEO of Blockstream. Back made the statement on Friday, July 29, to counter the claims that USDT dominance of the stablecoin space would soon be a thing of the past.
Back, who earlier predicted that BTC would hit $100k this year, stated that the reports are making rounds that USDC will overtake USDT as the dominant stablecoin doesn’t hold water.
A Misleading Report
He said that it based its inference only on market cap which he said could be “misleading” like obtainable with altcoins.
“Looking at only market cap, like with alt-coins, is highly misleading. look at velocity, integrations, use-cases and organic vs paid “adoption” artificially parked USD. take those into account and @Tether_to is so far ahead, it’s probably too late to catch”
The race for the dominant stablecoin is on and opinions abound on the continual dominance of USDT, the Tether-issued stablecoin which has dominated the stablecoin market for years. This seems about to change.
USDT Dominates The Stablecoin Market
USDT currently has a market capitalization of $66 billion and ranked at number 3 in the market. It is closely followed by USDC, another asset-backed stablecoin with a market capitalization of $54.6 billion.
In a similar reaction, Stacy Herbert of El Zonte Capital said that USDT daily trading volume dwarfs that of USDC ten times.
She added that:
” Tether velocity also tends to equal or exceed its market cap whereas USDC does only 10-20% of its alleged market cap in volume.”
Inducements And Artificial Park of USD
The Blockstream CEO, Adam Back, reiterated that the USDC market capitalization is artificially induced. Back in a response wrote:
“tether_to doesn’t pay inducements to artificially park USD in it. Claims are next stable is renting market cap via inducements at a cost of $100m’s/year, hence large raises and low volume. not apples to apples. Like an altcoin using its own money to amp “TLV”.”
Campaign To FUD Tether
Some market watchers alluded to the fact that, unlike USDT, USDC has never been audited. One of the skeptics on the imbalance in the way the two stablecoins are judged is Jenkijo, a Twitter user who wrote:
“Not surprised, USDC funded by “big tech” “big VCs”, they waste their money to run nonsense campaign to FUD #Tether. But it’s never work in long term, use-cases, integrations and adoption is real”
Another user, @Clownverse2 reinforced this view, saying,
“Why does USDC not get a fraction of the hate that Tether gets? USDC reservers have never been audited. All we get are “self attestations” which basically means “trust me bro”.”
At the time of filing this report, USDT has registered a 24 hour trading volume of $80.24 billion, while USDC trading within the same period is $9.64 billion.