The Stablecoin Battle
USDC’s total supply on Etheruem now exceeds that of long-time competitor Tether. According to Etherscan USDC currently has a total supply worth $40.5 billion while USDT’s total supply is $39.8 billion.
Tether seems to be the clear winner in terms of transfer volume. According to the latest statistics, Tether has received a total of 136.7 million transfers while USD Coin has only seen just over 33 million. This basically shows that ERC20 USDT was more frequently transacted than ERC20 USC.
Since its inception, Tether has been a market leader. Tether continues to be a market leader, despite the appearance of many stablecoins. Tether still holds the largest number of stablecoins currently in circulation. Its market cap is estimated at $80 billion as of the date of writing.
Tether’s biggest market is Ethereum but the rising network fees have forced Tether to shift to other networks. Many cryptocurrency traders have turned to more efficient blockchains with lower transaction fees. More than half of the total supply, or $42 billion, is located on Tron’s network. Rest is distributed on Omni, EOS and Algorand blockchains.
However, USD Coin’s circulating supply on Tron blockchain exceeds $528 million and its total market capital is $46 billion.
What is driving USDC’s growth?
While Tether remains the most widely used and preferred stablecoin, USDC Coin has made a name for itself in decentralized trading. USDC’s growth accelerated as DeFi activity increased. Contrary to popular belief, USDT’s demand is primarily driven by institutional users and central cryptocurrency exchanges. It is not surprising that USDT has seen a decline in demand due to the stagnant market.
Tether has also been the subject of severe backlash due to its “backing.” The firm has been involved in numerous lawsuits over the years. The bad press surrounding Tether has been exacerbated by the firm’s inability to be transparent.
Circle, a crypto-focused, regulated financial service company behind the dollar-pegged stablecoin has not faced any regulatory hurdles.
Marla Brooks – Financial Analysis
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