Tether versus. USD Gold coin on-chain data reveals two completely different stablecoins

USD Gold coin (USDC), a stablecoin from the U.S.-based Circle Financials Limited, takes charge over its top rival, Tether (USDT), with regards to institutional adoption, based on on-chain data.

USDC daily transfer volumes are greater

The marketplace capital of USDC tokens in circulation comes to be with $44 billion versus USDT’s $65.42 billion. However, USDC’s daily transfer value around the Ethereum blockchain continues to be consistently greater than USDT throughout 2022, data from Glassnode shows.

For example, by November. 22, the USDC daily transfer was around $14 billion when compared with USDT’s $5 billion.

USDC versus. USDT daily transfer volume. Source: Glassnode

Quite simply, USDC users participate in relatively greater capital transfers when compared with USDT users, suggesting that USDC is more and more the stablecoin of preference among high internet-worth entities including institutional whales, hedge funds, family offices, crypto exchanges, etc.

Related: 82% of Tether reserves locked in ‘extremely liquid’ assets, based on attestation

In addition, USDC leads USDT when it comes to its supply weight across smart contracts by November. 22. Particularly, the previous composed 33.75% from the total stablecoin supply locked across staking pools. Compared, USDT’s supply is about 12.50%.

USDC versus. USDC supply in smart contracts. Source: Glassnode

However the greater daily transaction count versus USDC shows that Tether is much more likely employed for retail buying and selling and transfers for example remittances.

USDC versus. USDT daily transaction count. Source: Glassnode

However, USDC seems just like a top stablecoin option for tech-savvy institutional traders that lock their in staking contracts to earn yield.

This really is further reflected in USDC’s lower daily active addresses count of 40,245 versus USDT’s 73,000, as documented on November. 21.

USDC versus. USDT daily active addresses. Source: Glassnode

Furthermore, crypto buying and selling platforms applying so-known as “proof-of-reserves” following the FTX collapse seem to hold more Tether within the USD Gold coin, further signaling that USDT is probably popular among retail traders.

These exchanges include Binance, KuCoin, BitFinex, ByBit, OKEx, and Huobi. Crypto.com’s reserves would be the exception with increased USDC than USDT.

Crypto.com’s evidence of reserves. Source: CoinMarketCap.com

Tether market cap dips after FTX collapse

The marketplace capital of USDT came by nearly $4 billion following the FTX exchange collapse nearly two days ago.

The main reason are closely related to Tether briefly veering off from the $1 valuation, hitting 96 cents on November. 10, after it froze $46 million worth of USDT tokens connected with FTX.

Interestingly, the USDC market cap rose by nearly $2 billion after November. 10 once the FTX fiasco started.

USDT versus. USDC market cap performance within the last six several weeks. Source: Messari

Tether has past breaking its dollar peg during extreme market stress although to some lesser degree recently.

For example, the token dropped below 95 cents throughout the crypto market selloff in May, coinciding having a spike in USDC’s market cap. This means that some investors moved their capital from Tether to USD Gold coin because the former lost its dollar peg, as proven below.

USDT/USDC three-day cost chart. Source: TradingView

However, Tether came back to dollar parity inside a couple of days, asserting the tokens in circulation are backed 100% by reserves and pegged 1-to-1 with dollars

This short article doesn’t contain investment recommendations or recommendations. Every investment and buying and selling move involves risk, and readers should conduct their very own research when making the decision.

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