USDT Beats Rivals as USDC & BUSD Struggle Amid Bank Closures
• Binance CEO Changpeng Zhao highlighted how USDT has grown amidst the issues plaguing its rivals.
• USDT’s supply has grown by more than 10% in the last 30 days to $76.97 billion, according to CryptoSlate data.
• USDC and BUSD’s supply have declined by more than 15% and 38% in the last 30 days respectively, due to challenges emanating from the U.S.
Binance CEO Highlight USDT Growth
Binance CEO Changpeng “CZ” Zhao highlighted how Tether’s USDT has grown amidst the issues plaguing its rivals in a March 21 tweet. According to him, Binance USD (BUSD) was forced to stop other mints despite being regulated by New York authorities and audited by “big audit firms” resulting in a decrease of 15% and 38% in USDC and BUSD supply respectively. On the other hand, CryptoSlate data showed that USDT’s supply grew by more than 10%, reaching $76.97 billion over the last 30 days and pushing its market dominance up to 58%.
USDT Supply Nears 80 Billion
On-chain sleuth Lookonchain said that 5 billion USDT tokens were minted on Tron and Ethereum blockchain networks over the past seven days; coinciding with when USDT’s supply reached a ten-month high. This surge also saw TrueUSD (TUSD) grow massively as it enjoyed massive adoption which pushed its own supply beyond 2 billion for the first time ever. To capitalize on this growth, Binance moved it’s zero-fee Bitcoin (BTC) trading from BUSD to TUSD on March 22 while adding TUSD to its Secure Asset Fund for Users (SAFU).
Issues Plaguing Rival Stablecoins
The recent bank issues involving crypto-friendly banks like Silicon Valley Bank and Signature Bank affected USDC significantly resulting in it shrinking in market cap too due to bank closures. Regulatory actions triggered a decline for BUSD while USDC depeg was caused by collapse of crypto-friendly institutions which adversely affected confidence in USDC leading investors preferring stablecoins such as USDT instead of their counterparts like USDC or BUSD that are facing specific challenges arising out of U.S jurisdiction or banking policies .
Increased Preference For USDT
Since these events, crypto investors have shown an increased preference for USDT which has been observed through a massive increase of 10% within last 30 days taking it’s total value up to $76.97 billion according CryptoSlate data along with TrueUSD enjoying massive adoption pushing it’s total value beyond 2 billion for first time since launch .To further capitalize on this growth, exchange giant added TUSDT into Secure Asset Fund for Users (SAFU).
It can be concluded that though both USDC & BUSD have faced major fallbacks due to certain issues arising out of their respective jurisdictions , investors have still preferred stablecoin i..e.,USDT because of regulatory ease given by government authorities & increasing trust among users .This shows why exchanges are choosing stablecoins like Trueusd & tether over others as they provide better security & stability thereby having better customer satisfaction ratio as compared rest