Circle’s stablecoin USDC has overtaken Tether’s USDT for the first time in the number of daily transactions on Ethereum, Nansen.AI CEO Alex Svanevik highlighted on Twitter.
This news is the latest in a series of bad events for Tether. USDT still holds the lead in market value and daily trading volume. However, there is growing speculation that USDT might be losing its position as its number one status in stablecoins to USDC.
A Series Of Bad News For USDT
Just a couple of days ago, USDT lost its $1 pegging after the Celsius Network announced that it is freezing withdrawals. It had also lost its peg in May following Terra’s monumental collapse. Similarly, there have been growing fears that USDT may be on the same crash path as Terra’s UST.
Fox Business journalist Eleanor Terrett highlighted how a crypto industry source had moved all his stablecoins from USDT to USDC. She highlighted the fear in the industry over USDT losing its peg and the similarities to Terra. Just a couple of days ago, USDT fell below the $70 Bln mark in market cap and on June 18th, Tether’s CTO tweeted about a DDOS attack on Tether. There have also been allegations on Tether over Chinese Commercial Paper Holdings.
Meanwhile, USDC had gained over 1000% percent in market value in over a year. It currently holds a market value of about $55 billion and is providing stiff competition to USDT.
Tether Comes Out In Strong Defense
On June 16th, Tether condemned and refuted the rumors of commercial paper holdings. It highlighted the rumors as a tactic to cause panic in already stressed markets.
It also needs to be noted that while USDT lost out to USDC on Ethereum, it has more tokens on Tron compared to Ethereum. Today, Tether informed Euromoney that it is prepared to commit to a full audit of its reserves by a Top 12 firm to offer greater transparency. Tether would hope that these measures are sufficient to calm down the fears of a Terra-style downfall.