By George Ward
Following several incidents in 2022, the Circle-issued USDC stablecoin suddenly became popular among cryptocurrency investors. A data study by blockchain analytics company Glassnode claims that the USDC currently has a daily transfer volume up to four or five times more than that of its main rival, Tether USDT.
This is true even though the USDT remains the largest stablecoin based on market capitalization. According to the data, USDC has a transfer volume of $15 billion compared to $3 billion for USDT.
The total amount of transfers between USDC and USDT is $7 trillion higher overall.
The Rising Adoption Of USDC Stablecoin
It may be crucial to remember that stablecoins are typically a safe investment option for cryptocurrency investors, especially now that the market volatility is at its greatest. Strangely, investors have been opting to save their fiat in the USDC stablecoin instead of other stablecoins.
Investors’ rising interest in the USDC stablecoin proves that they consider it a safer alternative to other stablecoins. Many supporters of USDC are constantly ready to point out that USDC’s assets are backed by actual money or short-term US Treasury bonds.
They also argue that Circle does monthly audits and keeps the entire process public. Tether, on the other hand, has frequently been accused of stretching the facts about its reserves.
For instance, in October 2021, a court fined USDT issuer (Tether) $41 million over reports concerning its reserves. Furthermore, the Commodity Futures Trading Commission (CFTC) accused it of failing to retain enough reserves of over 72% in two years.
Also, many investors argued that Tether had some level of exposure to the defunct FTX exchange and Alameda trading firm. They support their argument with the brief de-pegging of the USDT almost immediately after the FTX crash.
However, Tether has addressed the concerns, claiming no such exposure exists. Tether doesn’t perceive a threat despite the possibility that consumers are switching to its rival (the USDC).
The company emphasizes that its steady increase in market capitalization demonstrates “the market’s continuous faith and confidence in its USDT stablecoin.”