The market capitalization of Circle's stablecoin USDC has fallen by approximately 50% in the past year, with its current market cap standing at around $26.7 billion. This is due to competition from Tether, which has seen a 27% increase in market cap since July 2022. USDC's credibility has also been affected by a temporary de-pegging to $0.97 following the insolvency of Silicon Valley Bank.

Despite this, USDC is still the preferred choice for many institutions as a bridge between the real world and the digital asset space in a regulated environment. USDT is the dominant stablecoin in Asia and is favored by crypto natives for daily trading and providing liquidity in DeFi, while USDC is mainly used in the US market.