While the XRP price continues at the lows, Ripple is alarming. This case of the SEC has caused fluctuations across the industry and people are questioning what’s next?
Some say it could be Link, Bitcoin, or even Ethereum, but realistically, there’s a problem that has been valid all this time. This is a situation where the entire ecosystem was obsessed at some point but forgot to some extent since then – Tether.
According to a research paper published by John M. Griffin and many other articles, all those who are curious are proving that Tether (USDT) is not demand based but supply oriented. This means Tether played an important role in raising the price of bitcoin in 2017’s historic bull rally. While the NYAG’s (New York City Department of Justice) trial is actually ongoing, it hasn’t made any progress for a while.
Tether did not provide substantial evidence that all of the 12.4 billion USDT in circulation was backed by USD in the bank.
This list can go on and on, but it is not the subject of this article. Yes, although the NYAG is already dealing with Tether through a lawsuit, the SEC could bring further charges.
Judging by how XRP reacts, we can see a similar user and exchanges drifting away from USDT. At this point, it is impossible not to wonder where this migration will flow.
The answer is simple – Circle’s USDC.
Why is that?
Besides tether, Circle is the most regulated and government-friendly stablecoin with the largest market cap.
It has partnered with many government agencies and integrated into multiple blockchains.
Approval from Granth Thornton LLP to demonstrate their support.
It partnered with VISA, a traditional finance company that will use USDC.
Actively seeking legal ways to get stablecoin adoption in the traditional world.
While tethering is hard to break off, if the SEC puts more fees on the USDT and joins forces with the NYAG, it could hurt Tether enough to reach an exit from major US exchanges.
After that, retail will slowly rise from USDT and to USDC or other stablecoins. Circle’s USDC grew by 520% between December 2019 and 2020, and its market share increased from 16% to 18%.
Given all these potential factors, if the SEC or other government officials decide to go after Tether, USDC stands to be the stablecoin that will benefit the most.