Which stablecoin will be highlighted in 2020?

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Avatar for SabrinaCoin
4 years ago

Jeremy Allaire, CEO and Co-founder of Circle, made a series of tweets criticizing his biggest competitor, stablecoin Tether. Allaire said that USDT is not only not compliant but also not transparent.

"Tether remains the largest stablecoin, offering an attractive option as an unregulated offshore shadow banking solution in dollars for China and Asia. Its greatest feature is its noncompliance and opacity".

Paolo Ardoino, CTO of Bitfinex and Tether, responded to Allaire's criticism. Ardoino said that Tether's main feature is listening to customers and managing the creation of visionary products. In addition, Ardoino added that USDT understands the needs of crypto products since 2014.

Allaire continued to criticize the stablecoins that compete with USDC (Circle's stable crypto). He pointed to the failure of PAX (Paxos stablecoin), GUSD (Winklevoss twin stablecoin) and BUSD (Binance stablecoin) which were stable or declining in capitalization.

"While the industry and the media are enthusiastic about future / unreleased 'stablecoins' and CBDCs, the market is speaking for itself. The USDC continued to overtake (~$520M in circulation), the PAX was stable at $240M, the TUSD was in rapid decline and the GUSD and BUSD are DOA".

However, the technologist also said that "the market is speaking for itself. Using this argument to analyze Circle's own stablecoin we see that it still suffers from a major disadvantage compared to the main stablecoin in the crypto sector.

Although the USDC is the second stablecoin with the largest capitalization, it is a long way from reaching the USDT. Tether, the fourth largest crypto in the market, has a Market Cap of US$4,134,895. USDC, which appears only in 22nd position, has a capitalization of US$517,415, that is, it is exceeded eight times, in market value, by Tether.

Even if the numbers are not on the Circle's side, the company can see its stablecoin grow rapidly in 2020. Blockchain Capital's report left some predictions for this year and one of them was very positive for USDC.

Although Blockchain Capital states that Tether will continue to dominate the stablecoin space, the company sees for USDC a growth of more than 300% measured in transaction value, issue, volume and capitalization.

An advantage for the USDC growth is that the stablecoin is audited on a monthly basis. Meanwhile, Tether fuels market distrust by stating that only 74% of all USDT tokens are pegged to the Dollar.

https://guiadobitcoin.com.br/noticias/qual-stablecoin-sera-destaque-em-2020/

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