USDC Beats USDT In Transaction Volume By Over 400%

Tether’s (USDT) seemingly unchallenged reign as the king of stablecoins is facing a new challenger.Circle’s us dollar coin According to on-chain analysis by payment giant Visa, (USDC) achieved a surprise victory, recording higher trading volume than Tether in April 2024.

This development marks a major change in the stablecoin landscape. While Tether boasts an impressive market capitalization of over $110 billion, USDC, with a valuation of $33 billion, has emerged as the more actively traded coin.

USDC processed $456 billion (400% more) in transaction volume last week, compared to Tether’s $89 billion, according to Visa data.

Stablecoin transactions. Source: Visa

USDC: Slow and Steady Climb

This victory was not a sudden success overnight. USDC has been steadily chipping away at Tether’s dominance since late 2023. According to Visa data, in December 2023, USDC’s monthly transactions exceeded Tether’s for the first time, with 145 million transactions compared to Tether’s 127 million. April numbers solidify this trend, with USDC recording over 166 million transactions compared to Tether’s approximately 164 million.

Source: Visa

Experts point out several factors behind the rise in USDC. Increasing regulatory scrutiny over Tether’s reserves and continued concerns over its transparency could drive users towards USDC, which is perceived as a more regulated and auditable stablecoin.

Additionally, the USDC-Visa partnership itself may play a role. Visa launched its stablecoin analytics dashboard in April, prominently featuring USDC along with other major stablecoins. This increased awareness could attract new users to the platform.

As of today, the market cap of cryptocurrencies stood at $2.2 trillion. Chart: TradingView.com

Tether still holds the crown (for now)

Despite the impressive surge in USDC trading volume, Tether remains the undisputed king in terms of market capitalization. Its $110 billion dwarfs USDC’s $33 billion, indicating a much larger total amount of coins in circulation. This suggests that Tether is still the preferred store of value for many cryptocurrency investors, even if they are not actively trading Tether frequently.

Additionally, Tether boasts a very large user base. Although USDC processed more transactions in April, Tether saw activity from over 34 million unique wallets compared to USDC’s 9.57 million. This could mean that Tether is used for large-scale trading and by a wide range of individuals, while USDC caters to a more active trading community.

The future of stablecoins: a two-horse race?

The battle between USDC and Tether is not over yet. USDC’s recent success in trading volume indicates its growing influence within the cryptocurrency ecosystem. However, Tether’s established user base and market capitalization advantage suggest that it will not be easily dethroned.

The evolving regulatory landscape and user preferences for transparency and security will be key factors shaping the future of stablecoins. It remains to be seen whether USDC can maintain its momentum and challenge Tether’s market capitalization dominance, or if Tether can regain the lead in trading volume.

Featured image from Tap Global, chart from TradingView

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