It looks as if the armies are gearing up for a battle of stablecoins. Looking on the high ten cryptos by market cap, it’s clear that Tether [USDT] reigns supreme. However, USD Coin [USDC] is the fifth greatest crypto by market cap and the second greatest stablecoin. In tenth place at press time was TerraUSD [UST].
So, is there an opportunity of UST knocking over USDC any time quickly?
Clash of the Titans
For starters, let’s check out the market caps of the 2 stablecoins. At press time, USDC boasted a market cap of round $49,172,892,190, placing it between BNB [BNB] and Ripple’s XRP.
Meanwhile, UST had a market cap of round $18,639,297,415, placing it between Cardano [ADA] and Binance USD [BUSD]. As anticipated, it’s clear that UST must greater than double its market cap to match USDC.
On that be aware, nevertheless, let’s evaluate volumes for the 2 stablecoins. USDC noticed volumes of round 4.12 billion at press time. While volumes have been rising since round 24 April, the final vital spike came about in February 2022.
Meanwhile, when coming to UST, we can see that the stablecoin recorded volumes of round 540.59 million at press time. Volumes have been constant since about 25 April, nevertheless it’s plain that UST continues to be a great distance off from matching as much as USDC.
What’s your alternate coverage?
Looking at alternate provide can present us the demand for each stablecoins. At press time, USDC was quickly leaving the exchanges, and a couple of billion was eliminated between 2 April and a pair of May. This reveals booming demand for the asset.
On the opposite hand, UST was additionally leaving the exchanges however mentioned volumes had been nowhere close to these of USDC. In truth, April noticed thousands and thousands of UST returning to the alternate earlier than launching right into a development of UST exiting exchanges.
Finally, it’s vital to keep in mind that the place Terra is worried, different property additionally come into play. In truth, the Luna Foundation Guard (LFG) Reserves had a complete of $1.96 billion at press time. Out of this, round 148.66 million was in USDC whereas 26.28 million was held in USDT.