Crypto analyst Andrew T, who is also part of the Nansen.ai team, has shared that smart money has not been buying USDC, despite its recent re-pegging. In a tweet this morning, he noted that the re-pegging was retail-driven, and that both institutional and retail investors remain hesitant to invest in USDC.
USDC is currently the second largest stablecoin by market cap, with an estimated market cap of $40.75 billion. However, its biggest competitor, Tether (USDT), remains the largest stablecoin by a significant margin, with a combined market cap of over $71.81 billion.
Andrew T suggests that USDC’s recent re-pegging was merely a “dead cat bounce,” a term used to describe a temporary price increase in a declining asset. Despite the re-pegging, smart money remains skittish about USDC, with both institutional and retail investors hesitant to invest in the stablecoin.
Tether Maintains Dominance in the Stablecoin Market
Despite recent turbulence and FUD in the cryptocurrency market, Tether has been able to maintain its peg with the U.S. Dollar. Tether’s stability is likely due to its early entry and widespread adoption in the cryptocurrency market. It was launched in 2014, making it one of the oldest stablecoins in the market, and it has been adopted by many exchanges and cryptocurrency projects.
Tether’s dominance in the stablecoin market is also reflected in its market cap, which is over 75% higher than that of its closest competitor, USDC. Its market cap also makes it the third largest cryptocurrency project by market cap, behind only Bitcoin (BTC) and Ethereum (ETH).
Conclusion
USDC’s recent re-pegging may have restored its peg with the U.S. Dollar, but it has not been able to attract smart money, according to crypto analyst Andrew T. Tether remains the largest stablecoin in the market, with a significant lead over USDC in terms of market cap and widespread adoption.
The stability and dominance of Tether in the stablecoin market suggest that it may continue to be the preferred choice for many cryptocurrency investors and traders. Despite the growing competition in the stablecoin market, Tether’s early entry and widespread adoption have given it a significant advantage that may be difficult for its competitors to overcome.
