Macroeconomic turbulence has benefited Tether’s USDT over the past year, gaining considerable ground while stablecoin counterpart Circle witnessed a market share fall from nearly 35% to just over 23% at the time of writing.

While both stablecoins are pegged to the U.S. dollar, which has undergone quite the jumble of events amid the debt ceiling conundrum, lingering banking crisis and stinging inflation, Circle’s USD Coin declined in market share while Tether’s USDT enjoyed a tremendous boost.

The market dominance of the stablecoin jumped from 47% to nearly 66% during the past year, with market capitalization soaring to $83.1 billion, while the market cap of USDC dropped sharply from $55 billion to just $29 billion; behemothic, but not when pegged to Tether.

Circle CEO Jeremy Allaire pointed fingers at the stringent United States crypto regulatory crackdown as the reason for USDC’s recent demise in an interview with Bloomberg in April, which suggests that the current crypto environment of the United States seems to be more beneficial for Tether.

Sources:

https://cointelegraph.com/news/usdt-market-share-jumps-amid-economic-uncertainty-usdc-shrinks

https://cointelegraph.com/news/circle-ceo-blames-us-crypto-crackdown-for-declining-usdc-market-cap

https://coinmarketcap.com/currencies/tether/

https://coinmarketcap.com/currencies/usd-coin/