Since the Terra Luna crisis earlier this year, there has been a jolt in the stablecoin ecosystem.
At the time of Terra’s decline, UST was the third-largest stablecoin by market cap, behind Tether(USDT) and Circle’s USD Coin (USDC).
USDT was well ahead with almost twice the market cap of USDC. The combined market cap of the stablecoin industry was currently more than $170 billion.
Today, the stablecoin market is worth a total of $153 billion and the two top players are still USDT and USDC. The chart shows the dominance of each token in the entire crypto market. USDC and USDT together make up about 12% of the total crypto market cap.
Tether has lost over $16 billion in market capitalization since May, while USDC has grown by $4 billion. In terms of market dominance, both peaked in June before hitting a local low in early August.
During this time, numerous stories affected the circulating supply of both tokens. Tether continues to struggle with bankruptcy, improper audits and a misleading treasury claim. At the same time, Circle has had to contend with criticism for their decision to “blacklist” any address associated with Tornado Cash. According to a press release.
Circle announced a partnership with Bybit on Wednesday to “help accelerate Bybit’s growth as a gateway for retail and institutional USDC-based products.” Derivative contracts like options and futures are primarily closed in USDT, so the move to activate options paid in USDC is an aggressive move for Circle to try to further close the gap with Tether. “We are excited to have Bybit as a partner in our efforts to foster greater access and adoption of USDC,” said Jeremy Allaire, Circle co-founder and CEO.