Tether Circulation Hits New Peak as Circle Confidence Shrinks

The stablecoin ecosystem has also been affected by America’s war on crypto, with a clear divergence between the top two issuers.

According to the firm’s transparency, Tether supply has reached an all-time high of 83.36 billion USDT. reports, Industry analyst Will Clemente commented:

“The divergence from USDC is striking, reflecting easy access to Treasuries for US-based USDC holders and regulatory uncertainty for US-based circles.

What once was a competitive advantage for USDC is now the opposite,” he said.

Tether Reaches ATH of $83.35 Billion in Circulation

The divergence from USDC is striking, reflecting easy access to Treasuries for US-based USDC holders and regulatory uncertainty for US-based circles. What was once a competitive advantage for USDC is now the opposite. pic.twitter.com/OcExkpZqAW

— Will Clemente (@WClementIII) June 11, 2023

Tether keeps mint

Circle’s USDC was once favored by institutions, but with ongoing crackdowns across the industry, demand for the stablecoin is dwindling.

In addition, Circle was hit hard by exposure to the now-defunct Silicon Valley Bank. USDC de-pegged in early March, causing a massive loss of confidence.

The supply of USDC has declined by about 50% since June 2022, when it peaked at around $56 billion. As a result, its market share has also decreased to 22%, while Tether’s has increased to 64.5%.

According to CoinGecko, the total stablecoin market capitalization currently stands at $129.3 billion. This represents roughly 12% of the entire cryptocurrency market capitalization, although it has also declined significantly during bear markets.

On June 12, Glassnode reported that USDT and USDC continued to leave centralized exchanges, both hitting monthly highs for stablecoin outflows.

$ usdt Exchange outflow volume (7d MA) reached a 1-month high of 32,508,950.195 USDT

View metrics: pic.twitter.com/2XsLdprSgx

— Glassnode Alerts (@glassnodealerts) June 11, 2023

The flight to security from exchanges, especially Binance, has increased after the SEC’s dual lawsuits and enforcement action last week.

However, Changpeng Zhao, CEO of Binance warning Investors should not read too much into the Binance outflow figures from the analytics platform as they use TVL (Total Value Locked), which includes the decline in crypto asset prices.

crypto market outlook

Crypto markets have been quiet over the weekend as the consolidation continues. There was virtually no change in total capitalization over the past 24 hours, as it remained at $1.09 trillion.

BTC price remained stable at $25,800, while Ethereum declined marginally to $1,735 at the time of writing.

Unsurprisingly, BNB has been hit the hardest, with losses of 25% over the past week. Binance Coin was trading at its lowest price this year at $222, having dropped another 5% at the time of writing.