Circle will use a billion dollars to stay competitive

The Circle company, which produces the well-known USDC stablecoin, said that it hopes for its financial cushion, which is a billion dollars, to stay in the stable coin market. This is reported by Bloomberg, referring to the head of the co-issuer of the coin, Jeremy Allaire.

Figures and the situation on the stablecoin market

With the arrival of 2023, the capitalization of the stable USDC coin has decreased significantly — almost twice. It lost $18.3 billion in capitalization (at the beginning of the year it was $44.5 billion, and now it is slightly more than $ 26 billion).

At the same time, the main competitor of the stable coin, Tether, is doing much better. USDT by capitalization has grown since the beginning of the year to more than $83.5 billion.

Allaire admits that the decline in market share is partly to blame for the Binance crypto exchange, which decided about a year ago not to use the Circle stablecoin anymore. The reason for this was an attempt to expand its own stable BUSD coin. The head of the issuer additionally stated that other events were to blame.

He gives an example of the collapse of Terra, which helped the site. At the same time, the mandatory conversion of the Binance, on the contrary, hurt. The fall of the FTX crypto exchange also benefited, but the fall of regional banks had a negative impact.

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