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Circle USDC has been one of the leading stablecoins for several years. However, recent analyses indicate a gradual decline in the market value of this prominent stablecoin.
The Unstable Market Value of USDC
A year ago, the market value of USDC exceeded $50 billion. However, as shown in remarkable charts, there has been a significant decrease in this value. As of this writing, the market value has declined to approximately $25.9 billion.
The current trading volume highlights a loss of half of the market dominance compared to August 2022. As the decline continues, the chart shows a significant drop in value around March 11. During this period, a drop of over 8% was recorded, marking the highest drop seen in a long time, and there has been no recovery since then.
Silicon Valley Bank and USDC
USDC is a stablecoin pegged to the US dollar and created by Circle, a cryptocurrency payment company. The assets backing this stablecoin are securely held under the supervision of BlackRock, BNY Mellon, and other financial institutions. In the second half of July 2022, the market value of USDC reached its peak at approximately $55 billion.
Subsequently, as seen from the chart, this value dropped to around $44 billion in early March of the current year. The decline further accelerated due to the bankruptcy of Silicon Valley Bank, where Circle initially placed $3.3 billion of its reserves. However, after the federal bailout package provided to SVB, Circle regained control over these funds.
Tether (USDT) Strengthening Its Throne
While USDC struggles with its market value, Tether (USDT) has made advancements. According to observed charts, Tether’s market value has increased by approximately $20 billion from January to the present day. The market value was approximately $66.5 billion at the beginning of the year. However, as of this writing, the market value has exceeded $83 billion.
Despite the challenges faced by USDC in terms of declining market value, it has maintained its position as the second-largest stablecoin by market value. Data from CoinMarketCap shows that, as of this writing, it continues to maintain a leadership of over $20 billion compared to the closest stablecoin, DAI.
