• USDC stablecoin has experienced significant outflows following the closure of its key reserve banking partner Silicon Valley Bank in March.
• Investors have been fleeing from USDC to Tether (USDT), which has reached a 22-month high in market share.
• USDT has become the largest stablecoin in the market with a market capitalization of $79.6 billion, holding a 60% market share among stablecoins.
USDC Outflows Exceed $10B
The USDC token net outflows have surpassed $10 billion since March 10, when regulators closed down reserve banking partner Silicon Valley Bank, causing USDC to lose its peg temporarily and drop by 23%.
Investors Flee to USDT
Tether (USDT) has surged in popularity and market cap as investors have fled to it from other stablecoins such as Binance USD (BUSD). USDT’s market capitalization has grown from $71.5 billion to $79.5 billion since March 10, with TUSD also gaining prominence as one of the alternatives to BUSD.
Circle Regains Dollar Price Peg
Circle has regained its dollar price peg following the collapse of its banking partner but failed to recover its former market capitalization of $43 billion due to uncertainties in the banking sector and increasing regulatory scrutiny.
USDT Dominates Stablecoin Market
USDT holds a 60% market share among stablecoins and is now the largest stablecoin in the market with a total value of $79.6 billion according to DefiLlama data.
The collapse of Silicon Valley Bank caused significant outflows for USDC while investors flocked towards USDT due to increased regulatory scrutiny and uncertainty in the banking sector. Despite Circle regaining their dollar price peg, their token was unable to regain it’s previous value and USDT now dominates the stablecoin space with a 60% share of all tokens according to DefiLlama data.