Tether has really been pushed to the wall this time. Just yesterday, I finished analyzing that the biggest threat to USDT is not the coin price but the competitors, and then reality slapped me in the face.

Tether is gearing up to raise 20 billion USD, aiming for a valuation of 500 billion. This method is obvious enough—using its size to directly suppress competitors.

But looking back, Circle's move is more aggressive. They didn't just throw money at financing; they directly spent money to acquire the crypto company Axelar. This immediately increased the coverage of the USDC public chain by 8 times from its original scale. This is not just a merger; it is a strategic acquisition to fill in core weaknesses.

Axelar plays a unique role in the blockchain world—it is like a universal connector in the crypto ecosystem. Cross-chain technology is its specialty, allowing USDC to circulate seamlessly across different blockchains. Imagine the universality of a Type-C interface, which can be used by both Android and Apple devices. Similarly, USDC can now achieve this.

This acquisition directly addresses Circle's biggest shortcoming. Now USDC can be used as money on any chain, instantly doubling its use cases. Moreover, Circle is not just buying technology; the entire R&D team of Axelar has been integrated as well. Technology, talent, and a moat—all filled at once.

What's more, during this round of expansion, USDC's compliance has actually become stronger. Axelar's built-in cross-chain risk control system is like an airport security check system, making it easier for Circle to meet regulatory requirements, and institutional funds can be used more confidently.

In contrast, USDT has faced questions about compliance, reserves, and transparency since its inception. Recently, it was even rated at the lowest level by S&P, which adds considerable pressure.

Essentially, the current situation is: one is raising money, and the other is spending money. Tether relies on its scale to dominate, while Circle penetrates through its infrastructure. This is not a short-term competition; it is the ultimate battle in the world of stablecoins.