{
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    "date": "2026-04-22T08:57:51",
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    "modified_gmt": "2026-04-22T01:57:51",
    "slug": "tether-asserts-stablecoin-dominance-over-circles-usdc-amid-major-crypto-hacks",
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    "link": "https:\/\/hbbgroup.net\/en_us\/tether-asserts-stablecoin-dominance-over-circles-usdc-amid-major-crypto-hacks\/",
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        "rendered": "Tether Asserts Stablecoin Dominance Over Circle’s USDC Amid Major Crypto Hacks"
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        "rendered": "<div>\n<div>\n<h4 color=\"#333\">In brief<\/h4>\n<ul>\n<li>Growth in USDT\u2019s market cap has outpaced USDC\u2019s since Drift Protocol was exploited for $285 million this month.<\/li>\n<li>If USDC holders begin off-ramping the stablecoin or move it to exchanges, Compass Point analysts foresee lower profits for both Circle and Coinbase.<\/li>\n<li>Nansen analyst Jake Kennis posited to <i>Decrypt<\/i> that Tether\u2019s stablecoin likely offers superior liquidity during DeFi crises.<\/li>\n<\/ul>\n<\/div>\n<p><span>Tether\u2019s dominance over Circle has been rising since <\/span><a href=\"https:\/\/decrypt.co\/resources\/what-is-solana-a-scalable-decentralized-network-for-dapps\" target=\"_blank\"><span>Solana<\/span><\/a><span>-based Drift Protocol was exploited for $285 million this month, with <\/span><a href=\"https:\/\/decrypt.co\/resources\/defi-decentralized-finance-explained-guide-learn\" target=\"_blank\"><span>decentralized finance<\/span><\/a><span> users appearing to propel USDT\u2019s market cap to an all-time high on Tuesday following another major hack.<\/span><\/p>\n<p><span>Since attackers <\/span><a href=\"https:\/\/decrypt.co\/363260\/we-are-ready-to-speak-drift-beckons-north-korea-linked-hackers-following-285m-exploit\" target=\"_blank\"><span>linked<\/span><\/a><span> to North Korea <\/span><a href=\"https:\/\/decrypt.co\/363364\/north-korean-hackers-spent-six-months-infiltrating-drift-before-285m-exploit\" target=\"_blank\"><span>pulled off<\/span><\/a><span> one of DeFi\u2019s largest hacks this year, USDT\u2019s market cap has grown 2.1% to nearly $188 billion, according to <\/span><a href=\"https:\/\/decrypt.co\/price\/tether\" target=\"_blank\"><span>CoinGecko<\/span><\/a><span>. Meanwhile, USDC&#8217;s total value has increased at a slower pace, rising 1.4% to $78.25 billion.<\/span><\/p>\n<p><span>In a Tuesday note, analysts at investment bank Compass Point wagered that DeFi outflows have the potential to pressure USDC\u2019s on-chain circulation, a dynamic that would reduce gains derived from the stablecoin\u2019s backing, namely U.S. Treasuries, for Coinbase and Circle.<\/span><\/p>\n<p><span>\u201cDeFi outflows may result in users offramping USDC or holding USDC on exchanges with yield sharing arrangements,\u201d they wrote. \u201cEither outcome will put pressure on CRCL and COIN&#8217;s gross profit, via lower interest revenue or lower margins.\u201d<\/span><\/p>\n<p><span>The analysts\u2019 assessment is partly based on the fact that investors \u201cquickly withdrew\u201d $1.5 billion in stablecoins from lending protocol <a href=\"https:\/\/decrypt.co\/resources\/what-is-aave-inside-the-defi-lending-protocol\" target=\"_blank\">Aave<\/a> after attackers <\/span><a href=\"https:\/\/decrypt.co\/364849\/kelp-dao-exploit-aave-liquidity-crunch-6-2-billion-withdrawal-panic?amp=1\" target=\"_blank\"><span>swiped<\/span><\/a><span> funds related to <\/span><a href=\"https:\/\/decrypt.co\/resources\/how-to-invest-in-cryptocurrencies-staking-and-lending\" target=\"_blank\"><span>restaking<\/span><\/a><span> protocol Kelp DAO, and used them to borrow funds from Aave\u2019s platform.<\/span><\/p>\n<p><span>Although users have snapped up both stablecoins since Drift\u2019s protocol was plundered, Tether\u2019s product has likely benefited from superior crisis liquidity as fears have intensified, Jake Kennis, a senior research analyst at blockchain analytics firm Nansen, told<\/span><i><span> Decrypt<\/span><\/i><span>.<\/span><\/p>\n<p><span>\u201cThis gap may reflect that USDT\u2019s deeper liquidity across centralized venues provides a more immediate \u2018flight to safety\u2019 path during DeFi stress events, particularly for users seeking rapid exits from on-chain positions,\u201d he said.<\/span><\/p>\n<p><span>\u201cWhile both stablecoins remain well-collateralized, USDT\u2019s broader exchange integration and larger existing market share create network effects that tend to compound during periods of elevated protocol risk,\u201d he added.<\/span><\/p>\n<p><span>Drift\u2019s exploit has also intensified scrutiny on Circle\u2019s procedures. After attackers used Circle\u2019s infrastructure to move millions of dollars in crypto from one network to another, the company was <\/span><a href=\"https:\/\/decrypt.co\/364710\/circle-hit-with-class-action-lawsuit-over-285m-drift-protocol-hack\" target=\"_blank\"><span>hit<\/span><\/a><span> with a class action lawsuit last week for its alleged failure to freeze the funds.<\/span><\/p>\n<p><span>Circle has defended its conduct, with CEO Jeremy Allaire arguing that unilaterally deciding to freeze users\u2019 funds opens a \u201csignificant moral quandary.\u201d At the same time, Drift has <\/span><a href=\"https:\/\/decrypt.co\/364589\/drift-tether-148-million-recovery-plan-ditches-circle-usdc?_gl=1*f0jefj*_up*MQ..*_ga*NDcxOTkzMzMzLjE3NzY3ODIyMTk.*_ga_S6XJW9326S*czE3NzY3ODIyMTgkbzEkZzEkdDE3NzY3ODIyMTgkajYwJGwwJGgw\" target=\"_blank\"><span>signaled<\/span><\/a><span> that it will stop supporting the stablecoin after receiving recovery commitments from Tether.<\/span><\/p>\n<p><span>Compass Point analysts have assigned Circle shares a price target of $77 alongside a \u201cSell\u201d rating. The stablecoin issuer\u2019s shares changed hands under $98 on Tuesday, an 8% decrease over the past day, according to <\/span><a href=\"https:\/\/finance.yahoo.com\/quote\/CRCL\/\" target=\"_blank\"><span>Yahoo Finance<\/span><\/a><span>.<\/span><\/p>\n<p><i><span>Decrypt <\/span><\/i><span>has reached out to Circle and Tether for comment.<\/span><\/p>\n<div>\n<h3>Daily Debrief Newsletter<\/h3>\n<p>Start every day with the top news stories right now, plus original features, a podcast, videos and more.<\/p>\n<\/div>\n<\/div>",
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    "excerpt": {
        "rendered": "<p>In brief Growth in USDT\u2019s market cap has outpaced USDC\u2019s since Drift Protocol was exploited for $285 million this month. [&hellip;]<\/p>",
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