Stablecoins have been a hot topic of discussion since the collapse of the stablecoin UST, which fell below $1.
Since the incident, many stablecoins have also suffered a meltdown due to declining trust from crypto investors.
But two stablecoins still look to be going strong, namely USD Coin (USDC) and Tether USD (USDT). To date, USDT still leads all the other stablecoins in market cap and ranks third in the all crypto market cap ranking.
According to Arcane Research, this condition is likely to change as USDC will move up in market cap.
USDC will beat USDT
According to a report from Arcane Research, USDC currently has a market capitalization of $ 54.8 Billion, which is a decrease of 1.6% in the last month.
USDT currently has a market cap of 65.5 Billion, which is a decrease of 1.5% in the last month but still above USDC.
Arcane stated that this situation would soon change as USDC is predicted to experience a drastic increase in market cap, and USDT will experience a severe decline.
According to predictions from Arcane Research, USDT will experience a drastic decline based on its market capitalization, which has fallen by 28.7%.
At the same time, USDC experienced a significant increase of around 70%, and this is the basis for predicting a market capitalization appreciation that, according to Arcane Research, will reach $61.3 billion.
Most likely, this movement will occur due to the sentiment around USDC and USDT, which is currently very opposite.
USDC is currently positive as Circle, the company that issues USDC, continues to provide high transparency and the latest information regarding USDC.
Also, USDC has never had a problem with the government, unlike USDT.
USDT is experiencing a decline in confidence due to transparency issues that most investors consider lacking.
This condition has continued to occur since the US Government investigated USDT, which was deemed not to have US Dollars in its reserve fund following the USDT circulating in the market.
USDT’s Market Capitalization Declines
In addition, Arcane Research also stated that USDT will decline due to the company’s audit results that are still unclear for public consumption.
This unfavorable audit report makes distrust of Tether continue to increase, which can cause many investors to move from USDT to USDC.
On the other hand, Arcane Research also states that USDC continues to increase in fame mainly due to Circle, a subsidiary of Center, one of the best financial companies in the world.
This transparency is the primary key to the fame and trust of investors in a stablecoin. The urgency of this transparency is becoming even more significant, considering that many state governments are starting to become aware of the potential and problems of stablecoins.
In addition, with the narrative of issuing CBDCs or central bank digital currencies from several countries, stablecoin transparency is becoming increasingly important.
The reason is stablecoins will compete with CBDCs, and the safest and most useful will attract investors’ attention, thereby increasing the market capitalization of one of these assets.
Transparency is one of the essential aspects of security and benefits, so the urgency of transparency is high in stablecoins.
For now, USDC looks like it will still have the upper hand but has one problem, namely the problem of centralization, where most of the network is still controlled by Circle. But for stablecoins, it seems that centralization is not a big problem.
More News About Crypto : NEWS
Follow our Twitter : https://twitter.com/DinoDapps
