Circle-issued, the second most popular stablecoin, USD Coin (USDC), has the potential to overtake the most popular stablecoin, tether (USDT), in coming years, according to a survey of analysts.
Most of the respondents claim that USDC will benefit from its better regulatory status, which could allow the token to exceed its main rival, per a survey by personal finance comparison site Finder.com.
At the time of writing, USDT is ranked 3rd by market capitalization (USD 66.5bn), while USDC is 4th (USD 53.9bn).
“59% say now is the time to switch to USDC given it has a more favorable regulatory status and DeFi capability compared to tether. 78% think USDC will usurp USDT as the leading stablecoin in the market. 22% think this will happen as soon as the end of the year,” per the report. Another 22% estimate that this might happen next year, and also 22% said USDC could overtake USDT in 2024.
Dimitrios Salampasis, a featured expert and Director of Tech Innovation and Entrepreneurship at Swinburne University of Technology, said he believed “USDC is safer, more transparent and more compliant towards governmental regulations. Moreover, USDC has more transparency in relation to its reserves. I still have not seen a full and proper audit from USDT.”
At the same time, in the aftermath of the Terra meltdown and collapse of its terraUSD stablecoin and native token LUNA (now – LUNC), the absolute majority of the respondents indicated that attempts to restart the network do not have a future ahead of them.
A mere 2% of Finder’s panel estimates Terra’s hard fork revival plan could be successful, and 80% declare it will fail. The respondents claim that LUNA, the native token of the new Terra network, will be worth USD 0.84 by the end of 2022, and its value will slide to USD 0.46 by 2030. At the time of writing, it trades at around USD 1.96.
“The Luna brand will likely be damaged goods for the remainder of its existence (at least within the blockchain field). An algorithmic stablecoin based on trust is feasible, but it will most certainly not be hosted on a blockchain called Luna,” Daniel Polotsky, Founder and Chairman of crypto ATM chain CoinFlip, was quoted as saying.
– Circle Denies USDC Trouble Rumors, Tether Supply Still Elevated on Curve
– Tron is Eating into Ethereum’s Share of the Tether Market, But It Will Have to Do More to Become a Serious Rival
– Tether is Fully Backed, Has ‘Never Failed a Redemption,’ CTO Tells Short Sellers
– Stablecoin Active Addresses Hit New High After Terra Collapse While Bitcoin and Ethereum Addresses Drop
– Here’s the ‘Final Guidance’ on ‘Stablecoin Arrangements’ by BIS and IOSCO
– Do Kwon Says He’s No Fraudster and Has ‘Great Confidence’ in Terra 2.0