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Stablecoin Battle: USDC Transactions on Ethereum Outperform USDT


Stablecoin Battle: USDC Transactions on Ethereum Outperform USDT

With the crypto market crashing, there has been a renewed interest in the hedging that stablecoins offer to investors. As a result of this, crypto investors flocked to stablecoins like USDT, BUSD, USDC, etc. for this very reason. What followed was fierce competition between these stables as they battled for greater market dominance. Clearly, USDT has led the stablecoin market for years, but it looks like that is about to change.

USDC USDT Volume Flips

Stablecoin volume has increased lately. With the implosion of the UST, there were suspicions about the stability of these stablecoins, but that sentiment quickly faded as more and more investors took refuge in them. This saw the market capitalization of major stablecoins increase even during the stock market crash. USDT had been leading the charge with its volume reaching record levels during this time.

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However, it appears that USDT is seeing more competition for its title as the king of stablecoins. USDT, which is now operational on various blockchains, has maintained its high volume but is now experiencing significant competition from USDC.

USDC volume outperforms USDT on Ethereum | Source: Nansen

The volume of USDC on the Ethereum blockchain has now surpassed that of USDT. Messari data shows that if USDT had actual volume of $474 million in the last 24 hours on the Ethereum network, USDC’s volume was $1.2 billion. This will be one of the few times that stablecoin volume will exceed that of USDT on the Ethereum blockchain.

The best stablecoins

There are a number of reasons behind the move to stablecoins like USDC. For a long time, there have been concerns about supporting USDT tokens, such as holding Chinese commercial paper, which the company has denied. Above all, Tether, the company behind the stablecoin, has assured users that it has adequate support, but there are those who do not believe that there is enough support for it. This is where USDC comes into play.

USDT Market Cap at $72.43 Billion | Source: USDT Market Cap at TradingView.com

Unlike USDT, Circle USDC has never been subject to the same level of scrutiny. The CFO disclosed in May that it was “backed by the equivalent value of US dollar-denominated assets.” In addition, this is why Circle is beaucoup plus ouvert sur les investissements qui support les jetons, ils ont benéficié d’a level of confidence plus elevé parmi les investisseurs caril est actualellement considéré comme un stablecoin «sûr» dans lequel investir de l’ money.

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The market capitalization of these two stablecoins also reflects the fierce rivalry between them. USDT maintains its position as the largest stablecoin in the market, but USDC remains close behind. While the former currently boasts a market cap of $67.4 billion according to Coinmarketcap, USDC’s market cap has grown to $55.67 billion, making it the second largest stablecoin.

In general, however, USDT maintains its dominance in terms of total volume. Most of the token supply is now on the TRON network due to its cheaper transaction fees and its total volume on Coinmarketcap is more than 10 times that of USDC.

Featured Image from Timestamp Magazine, Chart from TradingView.com

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