October 11, 2022

USD Coin (USDC), the stablecoin issued by Circle, has lost nearly $10 billion in market cap over the final four months.

Details from DeFiLlama shows that USDC peaked at $55 billion in June. However, since then, it has skilled an 18% decrease, with as great as 11% going down just correct over the closing 30 days.

One amongst the clarification why this would possibly well comprise took place is Binance’s resolution to remove USDC from its platform closing month. On the time, it was unclear whether this would comprise a negative impact on Circle’s stablecoin.

Merit then, Circle CEO Jeremy Allaire wrote: “Binance is now not ending wait on for USDC, and switch will doubtless lead to more USDC flowing to Binance.” However, it looks bask in that was typically the case. Since the announcement of Binance on September 5, USDC has gone from a $51 billion market cap to $forty five billion, with BUSD rising 15% to $21.5 billion.

In Would possibly per chance additionally, USDC had skilled serious gains after the fall down of Terra and its native stablecoin UST, as merchants saw it as a safer token. Nonetheless, it is now sitting at January ranges.

The stablecoin market is at prove rate $148 billion, and has been rather flat within the past months. Tether’s USDT is the obvious leader, with a market cap of $68 billion. USDT, USDC, and BUSD, all centralized and fiat-backed tokens, yarn for 90% of the total stablecoin market. This raises the query of how decentralized are the total networks that depend so closely on these centralized stablecoins.