Will Tether USDT be overtaken by USDC as it declines?

• USDT market cap dropped below $70 billion.
• The number of significant accounts holding USDT has decreased.

After Terra’s collapse Tether (USDT) became the largest stablecoin by trading volume, but  the amount of supply held by addresses holding between $100,000 and $10 million USDT has almost reached a three-year low.

The number of significant accounts holding USDT has decreased, suggesting that some traders may no longer believe in the token. The change comes with an increase in traders selling USDT in favor of USDC and DAI, among other stablecoins.

According to data from blockchain analytics company Glassnode, the all-time high of $203k in active addresses was recorded in June 2020 and it maintained $100k active addresses in 2021. The recent market downtrend and the Terra collapse made investors withdraw, as a result of this Tether has only 46k active users.

Market Cap of Tether (USDT) Drops Below $70 Billion

According to CoinMarketCap, the USDT market cap dropped below $70 billion as a result of the increasing redemptions and depeg. The current market value of the USDT is $65.94 billion. At the time of writing Tether traded at $0.999258 with a trading volume of $37,581,558,019, USDT is up 0.02% in the last 24 hours.

In the meantime, the market capitalization of the USDC stablecoin keeps rising as it appears to be more stable than USDT, which has depegged throughout the past two turbulent crypto market periods.

Since the Terra crash, USDT has been trading at a slight discount to its $1 peg for almost two months. If this price range continues may be a chance to purchase USDT with the expectation of a complete recovery.