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USDC’s Market Share Declines While USDT’s Market Capitalization Soars

November 2, 2023 | by stockcoin.net

usdcs-market-share-declines-while-usdts-market-capitalization-soars

USDC’s Market Share Declines While USDT’s Market Capitalization Soars

The article titled “USDC’s Market Share Declines While USDT’s Market Capitalization Soars” highlights an industry shift within the stablecoin market. Circle Internet Financial, the company behind USD Coin (USDC), has decided to limit service for individual accounts in line with Tether’s practice of restricting access for retail users. As a result, Circle now exclusively caters to qualified institutional clients, leaving retail users with the option to access USDC through brokerages, crypto exchanges, and digital asset wallet services. Screenshots of a customer email suggest that Circle is discontinuing wiring and minting abilities for individual account holders, a move that mirrors Tether’s approach of imposing a minimum threshold for USDT minting and redemptions. While these changes occur, USDC’s market share has experienced a significant decline throughout the year, while USDT’s market capitalization has soared to an impressive $84 billion. This shift in the stablecoin landscape presents an intriguing development that merits further examination.

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USDC’s Market Share Declines

Circle Internet Financial curbs service for individual accounts

Circle Internet Financial, the company behind the popular stablecoin USDC (USD Coin), has announced changes to its services that will have a significant impact on individual account holders. In a move that mirrors Tether’s practice of limiting access for retail users, Circle is now curbing its service for individual accounts. This means that individual retail customers will no longer be able to mint stablecoins through Circle.

Screenshots of customer email suggest discontinuation of wiring and minting abilities for individual account holders

Screenshots of a customer email have surfaced, providing concrete evidence of Circle’s plan to discontinue wiring and minting abilities specifically for individual account holders. This information aligns with the broader changes in Circle’s approach, as the company narrows its focus to serving qualified institutional clients.

It is important to note that while individual retail customers will no longer have direct access to Circle’s services, they can still access USDC through brokerages, crypto exchanges, and digital asset wallet services. This ensures that retail users can continue to engage with USDC, although through alternative channels.

USDC’s market share has significantly declined throughout the year

As a result of these changes, USDC’s market share has seen a significant decline throughout the year. The decision to limit service and discontinue certain functionalities for individual account holders has seemingly affected the overall adoption and usage of USDC. With retail customers no longer able to directly mint or wire USDC through Circle, the ecosystem surrounding this stablecoin has experienced a notable shift.

While USDC remains a popular stablecoin in the cryptocurrency market, it is facing increased competition from other stablecoin offerings, particularly Tether’s USDT.

USDCs Market Share Declines While USDTs Market Capitalization Soars

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USDT’s Market Capitalization Soars

Tether limits access for retail users

In a similar approach to Circle’s recent changes, Tether has also implemented limitations on access for retail users. This means that individual retail customers are no longer able to directly engage with Tether’s services. Instead, Tether is now mainly catering to qualified institutional clients.

Circle accepts qualified institutional clients only

Circle and Tether share a common focus on serving qualified institutional clients. Circle had already shifted its services to exclusively cater to this clientele, while Tether has followed suit. By accepting qualified institutional clients only, both companies are positioning themselves as providers of stablecoin services that adhere to institutional requirements and regulations.

USDT sets a minimum threshold for minting and redemptions

Taking a page out of Tether’s playbook, Circle has reportedly set a minimum threshold for minting and redemptions of USDC. This means that there are specific requirements that must be met in order to mint or redeem USDC tokens. By implementing this threshold, both Circle and Tether are aiming to ensure that stablecoin supply remains in check and maintains stability.

USDT’s market capitalization reaches over $84 billion

As a result of these changes and the overall market dynamics, Tether’s USDT has experienced a staggering increase in market capitalization. Currently, USDT’s market capitalization has soared to over $84 billion, making it one of the most widely adopted and recognized stablecoins in the market.

The significant growth in USDT’s market capitalization can be attributed to its focus on qualified institutional clients, the limitations placed on retail users, and the set minimum threshold for minting and redemptions. These factors have created an environment where USDT has become the stablecoin of choice for institutional investors and traders.

In conclusion, the market share of USDC has declined throughout the year due to Circle Internet Financial’s decision to curb its service for individual accounts. The discontinuation of wiring and minting abilities for individual account holders has undoubtedly impacted USDC’s adoption and usage. On the other hand, Tether’s USDT has experienced a surge in market capitalization as it limits access for retail users and caters exclusively to qualified institutional clients. As both stablecoins navigate the evolving landscape of digital assets, the competition between them continues to shape the stablecoin market.

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