In May and June, the capitalization of the stablecoin USD Coin (USDC) grew due to the massive influx of investors after the collapse of the Terra ecosystem.
The USDC supply topped $56 billion, but it has fallen 12% over the past month. As of October 11, the capitalization of the stablecoin was just over $46 billion.
The decision of the Binance exchange to automatically convert user reserves into the BUSD stablecoin dealt a strong blow to the USDC position.
In particular, traders' funds in USDC, Pax Dollar, and TrueUSD were exchanged for the Binance stablecoin. Over the past few weeks, the supply of BUSD has increased by 12%, while the capitalization of USDC has decreased by 12% over the same time.
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From May 9 to June 19, USDC supply increased from $48 billion to $56 billion. Investors began to transfer their capital to this particular coin because the largest stablecoin Tether temporarily lost its peg to the dollar amid turbulence. Its capitalization has fallen from $83 billion to $68 billion.
However, USDT has maintained its status as the leading fiat-backed digital asset.
According to Paolo Arduino, Tether's CTO, his company paid out about $7 billion to investors at the end of May alone.