JPMorgan analysts say Binance’s decision regarding USDC and other stablecoins will benefit Tether.
Binance has announced that it will convert stablecoins such as USDC, USDP and TUSD to BUSD starting September 29. It will also terminate the trading pairs of these stablecoins for major cryptocurrencies such as Bitcoin and Ethereum.
JPMorgan Draws Attention to Tether
Banking giant JPMorgan believes that this decision by the cryptocurrency exchange will increase the importance of Tether in crypto trading.
Analysts used the following statements:
“In our view, this decision seems to increase the importance of Tether, which is threatened by USDC”
Bank analysts noted that the market share of Tether’s stablecoin USDT in the ecosystem has declined over the past 18 months.
After the Terra crash in May, most TerraUSD users preferred USDC and BUSD over USDT. With the latest move of Binance, USDT can prevent the blood loss it has experienced to some extent.
“In our view, the importance of Tether is not limited to market cap among stablecoins. It also depends on its use in trade transactions.”
Tether is included in 11 blockchains compared to USDC’s 8 blockchains, while its annual transaction volume is higher than both USDC and currencies like Bitcoin and Ethereum. The research report stated that Tether’s trading volume is still ten times that of USDC.
Based on these reasons, analysts think that Tether’s importance will increase after September 29.
