In the wake of Silicon Valley Bank’s (SVB) crisis involving USDT currency, its market value has dropped to half that of USDC.

There are a multitude of data and key metrics indicating that Tether (USDT), a stable digital currency, has been one of the largest winners and beneficiaries of the recent chaos in the cryptocurrency markets and US banking sector.

According to CoinGecko’s data, the market value of the stablecoin USDT reached nearly $75 billion on Thursday morning, which is its highest level since May 2022.

The market value of the USDT currency is now double that of the stablecoin currency USDC, which is the second largest stablecoin in the world issued by Circle, a company based in Boston, USA.

These two stable coins are currently leading the market in terms of market value for this category of digital cryptocurrencies. Stable coins have become a major feature and play a crucial role in the digital asset economy. Their value has greatly inflated over the past several years.

For instance, in March 2020, the market value of the stablecoin Circle USDC was around $564 million. Today, according to data from CoinGecko, this number is now $37.7 billion.

The market value of Circle’s currency has taken a heavy blow recently following the crisis of the collapse of American bank Silicon Valley. Last week, the stable currency briefly lost its link to the US dollar, causing its price to fall below the targeted equilibrium level of 1 dollar.

Immediately after the announcement of the closure of Silicon Valley Bank (SVB), where Circle had stored approximately 3.3 billion dollars in cash reserves, which are essential to the stable digital currency mechanism.

Many investors attempted to divest from the stablecoin USDC and replace it with other digital currencies. Data reveals that many of them did not repurchase it afterwards.

The stable digital currency Tether (USDT) exerts its dominance over the market.

Although the panic was temporary and lasted only two days, all of the issues with USDC were eventually resolved when the company was able to recover its reserves with the help of US authorities protecting depositors’ funds at Silicon Valley Bank. Additionally, the price of Circle’s currency returned to parity with the US dollar.

However, the aftershocks and investors’ concerns did not dissipate at the same speed. Many of them resorted to purchasing USDT currency.

This has become evident through USDT’s dominance over the majority share of the encrypted digital currency market, which has risen to 58.1%, the highest level since mid-September 2021, according to data from Glassnode website.

On the other hand, the percentage of USDC currency has decreased to about 30%, a significant drop from about 38% last summer. This occurred when the Circle stablecoin sought to take advantage of issues with USDT amidst the collapse of Terra currency.

At that time, the USDT Tether cryptocurrency also briefly lost its link to the US dollar. Investors rushed to exchange over $7 billion of the stablecoin for cash in approximately 48 hours.

One additional reason that supports the increasing dominance of USDT currency is the sharp decrease in the supply of Binance stablecoin BUSD. After US regulatory authorities ordered Paxos, the issuer of the stablecoin, to halt its circulation.

According to data from Coin Gecko, the market value of the stablecoin Binance USD (BUSD) decreased from $16 billion on February 13 to just $8.3 billion at the time of writing this report.