A data analytics platform, CryptoQuant CEO Ki Young Ju suggests that U.S. financial institutions favor Circle’s USD Coin (USDC) over Tether’s USDT.
Ju notes discomfort with USDT and recommends global stablecoin transactions in USDC. USDT’s market dominance, mainly in derivatives collateral, has reached 71.92%, with a $93 billion market cap, while USDC trails at 19.49%.
Tether dominates Ethereum and Tron networks, notably on Tron with over 95% token contracts. In 2023, USDT gained $24 billion in market cap, whereas USDC declined.
Circle’s exposure to the U.S. banking crisis in March 2023 contributed to USDC’s market cap falling to $25 billion from a peak of $55 billion. Ju suggests Coinbase International Exchange as a potential platform for global USDC use, citing its derivative products’ appeal to retail investors.
Coinbase’s recent partnership with African stablecoin exchange Yellow Card aligns with this strategy.
Also Read: Coinbase Expands Access to USDC in Africa with Yellow Card
Ki Young Ju’s view underscores a shift towards USDC by U.S. financial institutions, driven by discomfort with USDT, with the potential for Coinbase’s global platform to enhance USDC’s appeal amidst market dynamics.