As noted by Coinbase`s analysts, the collapse of FTX has expanded the share of stablecoin’s dominance of the cryptocurrency market. The coins, pegged to the US dollar at a 1:1 ratio, inspire confidence with their stable exchange rate and ability to back up assets in crisis situations. Unsurprisingly, stablecoins have strengthened their influence several times over the last 3-4 years.
Stablecoins are designed to reduce the hazards of digital market volatility. They are therefore a suitable means for on-chain operations and capital storage. These virtual assets are useful for providers of funds and dealers as they use them to settle on trading platforms and accumulate their earnings from trading crypto assets, as well as part of their investment portfolio.
While USDT has earned the status of the very first and largest stablecoin in terms of market capitalization, there is a lot of criticism directed at it. USD Coin (USDC), which ranks number two in capitalization after USDT (Tether), looks more beneficial.
USDC is certainly a major competitor to Tether, but in contrast, there is an emphasis on increased security, transaction transparency, and lower volatility. Like USDT, USDC has maintained near-perfect price stability since its release (except during periods of extreme market volatility).
By all means, volatility is characteristic of the entire crypto market, but the ups and downs of the Safemoon token price still stood out (for example, in April 2022 the rate soared by more than 20,000% and then fell down). The project does not have working solutions, clearly defined objectives, or use cases. Because of that, many crypto enthusiasts are skeptical about the asset, but that doesn’t stop traders from making money on token price movements and tracking SafeMoon price predictions. The main thing is to be cautious and follow a strategy. And according to the experience that investors have gained over the years of cryptocurrencies, only those projects that have a specific purpose or competitive advantage remain on the market, and USDC is definitely one of them.