The situation grows dire for the USD Coin (USDC) as it is constantly losing its valuation. The statistics show that in the past 3-months, the market valuation of USDC has witnessed a reduction of almost $11 billion.
USDC Keeps Losing Valuation
One of the major crypto exchanges Bitcoin.com, which also runs its crypto news forum ‘Bitcoin.com News’, has shared details surrounding USDC’s deteriorating valuation.
According to the report shared by Bitcoin.com News, the valuation of USDC has shed several billion in the past few months.
The situation for USDC seems to have gotten worse in the past 20-days. The report shows that in the past 3-months, USDC has lost $10.59 billion in valuation. The data analyzed is from July 7, 2022, until October 17, 2022.
As for the past 20-days (from September 28, 2022), the situation has gotten even worse as USDC’s valuation has dropped even lower.
According to the metrics, USDC now stands as the second-largest (USD-pegged) stablecoin in the cryptocurrency ecosystem. USDC has earned this spot in terms of its overall market valuation.
At the time of writing, the largest and most valued stablecoin is Tether (USDT).
As for the overall ranking, USDC currently ranks as the fourth-largest digital asset in the entire crypto industry, while USDT has the third spot.
USDC’s Valuation Gains after May
It was back in May 2022 when the Terra Network crashed, which caused the Terra USD (UST) to take a huge dip. At that time, UST was the second-largest stablecoin after USDT.
However, as the UST crashed, people either peopled to USDT or the next alternative, which happened to be USDC.
From May 8, when the incident took place to July 7, USDC’s overall valuation rose by 9%. But since then, the valuation of USDC has continued falling and to this day, its valuation has dropped more than $10 billion.
Even USDT has lost its valuation in the past couple of months. The data shows that its valuation has witnessed a reduction of over $12 billion in the recent past couple of months.
However, USDT has already started recovering but it seems to be a slow process. On the other hand, the valuation of USDC is not able to recover and it is constantly moving downward.
In the past 30-days, the overall valuation of USDT has risen by 0.6% but USDC has shed 10.6% valuation in the same period.
BUSD’s Valuation is growing
As the valuation of USDC is declining, Binance USD (BUSD), which is the stablecoin launched by the cryptocurrency exchange has been growing in valuation.
The data shows that in the past 30-days, BUSD’s valuation has surged by 3%. This is because Binance has been expanding its business all over the world such as in Japan, Brazil, New Zealand, and many more countries.
This way, the adoption level for its native token ‘Binance Coin – BNB’ and its stablecoin has been increasing.