About $7 billion worth of value has left the Circle-backed stablecoin USDC since October, according to Glassnode data analyzed by CryptoSlate.
The charts above show the market caps of USDT and USDC – both stablecoins that are pegged to the US dollar – since Jan 2020. Movements in both lines largely mimic each other until around Nov. 2022, after the collapse of FTX, with USDC beginning to lose market cap.
Prior to the collapse of FTX in October 2022, Tether had a market cap of $69.95 billion, compared with USDC’s $47.33 billion.
Today, USDC currently has a market cap of US$40.96 billion, nearly $7 billion less than it had prior to FTX’s collapse. USDT’s current market cap is $68.48 billion, also down from October 2022 but a smaller drop compared to USDC.
The news comes on the heels of a wider shakeup in the stablecoin industry, with regulators in the US beginning to scrutinize the issuance of BUSD, Binance’s stablecoin, issued by the US-based blockchain entity Paxos.
The SEC vs. Paxos: A deep dive into the implications of the lawsuit and its effects on stablecoins
The SEC’s notice to Paxos to stop minting BUSD could have longstanding implications on the crypto market. CryptoSlate’s new report explores the recent and potential consequences of enforcement action against Paxos.