Arcane Research: USDC to overtake USDT in market capitalization this autumn

Analysts at Arcane Research forecast continued growth in USDC’s market capitalization from Circle and a further decline in the market share of the largest stablecoin, USDT from Tether. The segment leader is expected to change in October, the firm says.

Researchers noted that for a long time USDT enjoyed the first-mover advantage, unmatched in market capitalization. However in November 2021 the token’s share among other stablecoins fell below 50% for the first time.

In 2022, the decline continued — the capitalization fell from $78 bn to current $66 bn.

“The reduction in supply by 15.5% corresponds to annualized figure of 28.7%,” the analysts noted.

On the other hand, the market capitalization of the main competitor USDT — the stablecoin USDC — in 2022 rose from $42.2 bn to $55 bn, which corresponds to 70.4% in annual terms.

“Tether began 2022 with a dominance index of 47.5%. USDC stood at 25.8%. By the end of the first half of the year, Tether and USDC shares were 43.8% and 36.3% respectively,” the analysts shared.

Arcane Research forecasts that, if the current growth pace continues, Circle’s stablecoin will surpass its main competitor in mid-October this year.

Analysts noted that the current market is characterised by considerable uncertainty and, consequently, the forecast cannot be considered precise.

As noted, the USDC backed by dollars and U.S. Treasury securities.

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