USDC Displaces USDT as Most Liquid Stablecoin on Centralized Exchanges: Data

An analysis by crypto market data provider KYCO revealed that USD Coin (USDC) is currently the most liquid stablecoin on centralized exchanges (CEX), with approximately $38 million in bids covering a .1% price deviation of the asset. .

USDC’s liquidity is followed by Tether (USDT), Binance USD (BUSD), True USD (TUSD) and Dai (DAI). the figure compiled All markets offered by KYCO using USDC as a base asset include a .1% bid-side depth.

USDC – Highest Liquidity on CEX

Caco noted While stablecoin issuers such as Circle and Tether ensure that their tokens maintain their parity, de-pegging can still occur in spot markets. This has made a stable currency spot market essential for price discovery.

“Theoretically, stablecoin issuers retain their pegs. However, de-pegging may still occur in the spot markets, especially considering #USDT redemptions start at $100k. types are extremely important for price discovery. This data aggregates .1% bid-side market depth across all markets that include stablecoins as the base asset,” Caco Said,

The latest development is significant for USDC, as USDT has always been in the lead. At the start of the year, USDC and DAI saw little use on the CEX. They mostly traded within the decentralized finance (DeFi) ecosystem, According To cacao

At the end of Q1 2023, a potential US banking crisis caused USDC to lose its dollar parity and fall 13% to below $0.88. However, the stablecoin has stabilized and is attempting to stay in the $1 price range according to data from CoinMarketCap.

Coinbase Increases USDC Rewards to 4%

USDC dominance on CEX can be attributed to crypto exchange Coinbase, which leverages rewards with the asset up to 4%. trading platform announced In a June 15 tweet that it is increasing its incentives for USDC holders from 2% to 4%, the move is aimed at enticing more users and increasing its position in the market.

Meanwhile, USDT, now the second most liquid stablecoin on centralized exchanges with nearly $26 million in bids, traded below the $1 price range during the week. Due to the ongoing Curve-Av ​​loan saga, the asset was valued at $0.99 at the time of writing, according to data from Coinmarketcap.