Binance dumps the dominance of USDC, Here is how?

The dominance of USDT (Tether) surged rapidly while USDC (Circle) dominance plunged by 5% only because of the Binance exchange.

The origin of the stablecoin concept entered in the crypto space with Tether, the first stablecoin issuer company. Due to the first mover advantage, USDT is standing at the first rank in the list of all stablecoins in the crypto space. USDC, a stablecoin backed by Circle company, is the biggest rival of USDT because of its significant transparent backed-end financial activities.

On 16 October, Crypto analytic platform Messari reported that recently USDC stablecoin dominance plunged significantly and a 5% downfall in its dominance occurred because of the all stablecoins swap into Binance stablecoin, BUSD, by Binance exchange. So the decision by Binance helped to increase BUSD stablecoin dominance by 5% only. 

$USDC's recent loss in market share can be directly attributed to @binance announcing a plan to convert all stablecoins, into $BUSD.

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This major change only accounted for a 5% increase in share for Binance…what does that mean for protocol native stables looking to grow share? pic.twitter.com/eCDy754hdT

— Messari (@MessariCrypto) October 16, 2022

On 18 October, Crypto analytic platform CoinMetrics reported that USDT is standing at first rank among all stablecoins on centralized crypto exchanges. 

It is worth noting that both USDT & BUSD supply decreased significantly because many people redeemed their stablecoin, so stablecoin issuer companies removed a significant amount of supply from the market. 

Both Tether and USDC supplies decreased this year as tokens are redeemed and removed from circulation.

Tether stabilized ~$67B after almost $18B in redemptions. USDC (on Ethereum) is approaching $40B after reaching a high point of almost $48B in February earlier this year. pic.twitter.com/o82CaQaN53

— CoinMetrics.io (@coinmetrics) October 18, 2022

Interestingly, USDT grabbed a better level of success in the crypto industry among retail investors because of USDT on the Trc-20 network. As we know that Tron’ Trc-20 is a high-speed crypto network and charges very low fees to transfer crypto assets on its network, so it helped all the small crypto traders to use USDT as the cheapest way to transfer funds on crypto exchanges. 

Read also: UK will study & implement laws from the international crypto laws

Binance dumps the dominance of USDC, Here is how?

 

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