Battle of the Two Stablecoins: USDT vs USDC, Who will Win?
Each stablecoin is taking its turns to plan its breakthrough plays as the competition between the two top stablecoins continues to see new rivalries every month.
Therefore, to keep you up to date, below is the most recent fact check regarding the current standings of this ongoing battle.
Stablecoins had a total market capitalization of approximately $153.65 billion at the time of this writing, with a trading volume of $62 billion over the previous twenty-four hours.
Most of the attention has been focused on the two top stablecoins, Tether’s USDT and Circle’s USDC. Despite this, the top stablecoin has experienced a significant decline in value over the past few months due to the UST scandal.
USDT Regaining Lost Ground
Take this particular scenario, for example. At the beginning of 2022, the market share held by Tether [USDT] was 47.5%, while the market share held by Circle’s USDC was 25.8%.
The popularity of Tether, however, has declined since then. As a result, its market share dropped to less than 40%. On the other hand, since the beginning of this year, the impressive stories that have been told about Circle’s stablecoin have not stopped.
However, it appears that the roles have been reversed. At the time of publication, the market value of USDT was calculated to be 67.57 billion, which represented 43.9% of the total; the trading volume for 24 hours was 49.8 billion, which represented 81% of the total. Despite the fluctuations, it remained pegged at $1 throughout.
In fact, during the preceding thirty days, the value of USDT on the market has climbed by 2.6%, whereas the value of USDC on the market has declined by 2%.
According to the data provided by Santiment, the fraction of Tether that is traded on exchanges has increased by twenty percent over the last three months. The ratio increased from 19.7% on May 9 up to 42% on August 14th.
📈 The ratio of #Tether on exchanges has gone from 19.7% on May 9th to a whopping 42.0% three months later. This can be viewed as both a signal that traders have taken profits as prices have rebounded, as well as a sign of a 2-year high in buying power. https://t.co/Xmscnu5NOb pic.twitter.com/UFuYAkrWlO
— Santiment (@santimentfeed) August 10, 2022
Therefore, this marks the first time since April 2020 that the supply of USDT on exchanges has climbed to be greater than 42 percent.
The compilation of such datasets would have a direct impact on the trading volume of USDT. This was the case here, as trading volume skyrocketed to the 56 billion mark, a significant benchmark.
Sharks with holdings ranging from 10,000 to 100,000 demonstrated significant accumulation over the past two to three weeks.
This Doesn’t Mean USDC is Lossing
The USDC presented some encouraging statistics to support the above assumption. For example, the number of daily activities on the Ethereum network surpassed Tether’s USDT a month ago. This was measured using the number of transactions.
In addition, the token issued by Circle is still the most widely utilized stablecoin regarding the volume of transactions. According to the data provided by Dune analytics, the USDC currently holds a share of 55.5% on this front. Tether holds only 18% of the market share.