Tether’s rival USDC reaches $3B as Tether becomes the most used cryptocurrency of 2020

Where Circle enjoys USDC above $3 billion market capitalization, Tether has equally been having a wild run as the most used crypto in 2020.

By · Dec 12, 2020 . 6min read

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Tether’s closest rival, USDC, after two years of existence and starting the year with $522 million, has now crossed $3 billion in market cap.

The fundamentals show USDC has come a long way since fintech company Circle established it in 2018. The stablecoin ranks among the regulated stablecoins and fully pegged 1:1 to the dollar. USDC has been largely instrumental to traders as well as DeFi enthusiasts. The latter employs USDC for yield farming as well as staking in liquidity pools.

Tether's rival USDC reaches $3 Billion as Tether becomes the most used cryptocurrency of 2020
Chart showing USDC growth, has grown by over 500% in 2020

In a broader sense, companies, products, and services support the USDC standard. This includes digital wallets, exchanges, DeFi protocols, savings, lending, and payment services.

Circle partnership with Visa gives USDC the needed edge.

More importantly, it is the kind of partnerships Circle keeps clinching and the fact that its regulatory compliance has been somewhat of a gamechanger for the stablecoin issuer. Only recently did it partner with Visa to open up USDC to Visa’s 60 million merchants. Not just that, most businesses that complete Visa’s Fast Track program will now be able to offer their customers the option of transacting in USDC on their platforms.

The stablecoin has already conducted transactions to the tune of $250 billion this year, where most businesses were hit adversely due to coronavirus. Circle CEO Jeremy Allaire recently penned a letter to the US Treasury Department calling for clear regulations on cryptocurrencies. He warned that the United States could lose out to China if it failed to roll out these suggested regulations. Although the US is home to many of the leading Fortune 500 companies, China has been moving at lightning speed. It is the first to demo its CBDC – digital Yuan. It’s also breaking several frontiers in blockchain and other decentralized ledger technology.

Tether, the most widely used cryptocurrency in 2020

As Circle enjoys USDC above $3 billion market capitalization, Tether has equally been having a wild run. It is now the most used crypto in 2020. Cryptodose Media had reported on how Tether had grown by almost twenty folds in 2020. More interesting is that Tether is now the world’s most used cryptocurrency in 2020, not Bitcoin, Ether, or Ripple. Popular among Asians, Sino Capital confirmed this when it said,

“USDT is a very popular way for Chinese crypto investors to enter the market with most exchanges offering a range of OTC options.”

Although Tether has confirmed its stablecoin USDT is not 100% backed by the dollar, the stablecoin is the first choice among most crypto traders and corporate entities. Tether currently controls $20 billion out of the $26 billion stablecoin markets.

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