Decrypting DeFi is Decrypt’s DeFi email newsletter. (art: Grant Kempster)

It’s been a wild two weeks in Cryptoland, and nothing has been more dissected than the collapse of Terra’s algorithmic stablecoin UST, now trading at about 6 cents. But as the dust settles, how are things looking for other stablecoins?

Circle’s USDC appears to have come out as a key winner among the top stablecoins. According to data from CoinMarketCap, the market’s second-largest stablecoin jumped from a market capitalization of roughly $48 billion on May 11 to more than $53 billion today. (Though supply and market caps aren’t the same things, there’s very little deviation between them because USDC held on to its peg throughout last week’s volatility. For reference, there are currently 52.99 billion USDC in circulation.)

The story is different for stablecoin market leader Tether (USDT).

Over the same period, USDT’s market cap plummeted from just over $83 billion down to $73.19 billion, according to CoinMarketCap. There are currently 73.28 billion USDT in circulation.

USDT market cap over the past month. (via CoinMarketCap)

For a brief moment, USDT also lost its dollar peg, dropping as low as $0.95. This, and perhaps the ticker’s possibility for confusion with Terra’s UST, contributed to billions of dollars in redemptions—hence the steep drop in the token’s market cap. Redemptions refer to any time a USDT holder requests to swap their holdings for traditional dollars. Tons of investors were eager to do exactly this. Tether’s CTO Paolo Ardoino said on May 17 that the…


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