Tether, the top stablecoin, has a market cap $100 billion larger than USDC. For USDC to surpass Tether, it needs to appeal to institutional investors and develop more consumer-facing use cases like online payments. Tether and USDC account for 90% of the stablecoin industry’s total market cap, with Tether at $158.9 billion and USDC at $62.6 billion.

USDC is a U.S.-based stablecoin, while Tether is domiciled in the Caribbean. Circle Internet Group issues USDC and recently became publicly traded. USDC is seen as the stablecoin for America, while Tether is more popular globally. USDC needs to expand internationally and secure partnerships to grow its global presence.

The Genius Act requires stablecoins to be backed 1:1 by cash. Tether’s opaque backing and lack of transparency pose regulatory risks. USDC is considered more transparent and compliant, making it favorable to U.S. institutional investors. USDC can grow by offering more consumer use cases and partnering with businesses like Amazon and Walmart for stablecoin payments.

USDC could potentially surpass Tether’s market cap within the next 24 months. With USDC’s transparency and compliance, institutional investors in the U.S. may choose it over Tether. If USDC continues to double in size annually, it could close the $100 billion gap with Tether. Consider adding Circle to your investment portfolio for exposure to the stablecoin market.

Read more at Yahoo Finance: USDC by Circle Is the Second-Largest Stablecoin by Market Cap. Can It Ever Catch Up to Tether?