Tether's dominance over Circle has been increasing since the Drift Protocol was exploited for $285 million. Since this incident, USDT's market cap has grown 2.1% to nearly $188 billion. Meanwhile, USDC's total value has increased by 1.4% to $78.25 billion. Analysts from Compass Point have suggested that DeFi outflows could pressure USDC’s on-chain circulation, which could reduce gains derived from the stablecoin’S backing, namely U.S. Treasuries, for both companies. The incident has also raised scrutiny on Circle's procedures after it was hit with a class action lawsuit for allegedly mishandling funds.