Tether’s market share has been declining in recent weeks, but the Circle-backed USDC stablecoin’s market value has risen to $55 billion.
Tether (USDT), the largest stablecoin by market capitalization and the third largest digital currency by market capitalization, is losing market value amid the current market downturn.
USDT’s market cap fell below $70 billion on June 16 for the first time since October 2021. The collapse came following a series of falls that began immediately after the USDT market value reached an all-time high of more than $80 billion in May.
According to CoinGecko data, Tether USDT’s market capitalization is currently $69.3 billion, up roughly $300 million from its multi-month low.
USDC, the second-largest US dollar-pegged stablecoin, is backed by the peer-to-peer payments technology firm Circle. The stablecoin’s market valuation reached $50 billion in February, but it has never surpassed Tether’s.
While USDT has been losing market share in recent weeks, rival stablecoins such as the USD Coin (USDC) have been gaining value. As a result, the USDC market cap increased from approximately $48 billion in mid-May to $55 billion in mid-June.
Tether’s declining market worth comes amid continuous market panic and uncertainty, with total cryptocurrency market capitalization falling below $1 trillion for the first time since February 2021.
The Tether corporation has been actively issuing announcements to reassure investors that the company is unaffected by the recent crypto lending problem. Tether stated on June 13 that the concerns surrounding the crypto loan platform Celsius had nothing to do with the company and would have no impact on USDT reserves.
Tether later announced plans to discontinue commercial paper backing for the USDT stablecoin on June 15.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews