{"id":514752,"date":"2022-11-23T18:28:29","date_gmt":"2022-11-23T15:28:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\/"},"modified":"2022-11-23T18:28:29","modified_gmt":"2022-11-23T15:28:29","slug":"tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\/","title":{"rendered":"# Tether vs. USD Coin on-chain data reveals two very different stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28a3616ca82\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28a3616ca82\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\/#%E2%80%9D_Tether_vs_USD_Coin_on-chain_data_reveals_two_very_different_stablecoins_%E2%80%9C\" >&#8221; Tether vs. USD Coin on-chain data reveals two very different stablecoins &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\/#USDC_daily_transfer_volumes_are_higher\" >USDC daily transfer volumes are higher<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\/#Tether_market_cap_dips_after_FTX_collapse\" >Tether market cap dips after FTX collapse<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Tether_vs_USD_Coin_on-chain_data_reveals_two_very_different_stablecoins_%E2%80%9C\"><\/span>&#8221; Tether vs. USD Coin on-chain data reveals two very different stablecoins &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5129e2ea>USD Coin (USDC), a stablecoin issued by the U.S.-based Circle Financials Ltd, is taking the lead over its top rival, Tether (USDT), when it comes to institutional adoption, according to on-chain data.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"USDC_daily_transfer_volumes_are_higher\"><\/span>USDC daily transfer volumes are higher<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market capitalization of USDC tokens in circulation comes to be around $44 billion versus USDT&#8217;s $65.42 billion. However, USDC&#8217;s daily transfer value on the Ethereum blockchain has been consistently higher than USDT throughout 2022, data from Glassnode shows.<\/p>\n<p>For instance, as of Nov. 22, the USDC daily transfer was around $14 billion compared to USDT&#8217;s $5 billion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/826ab833-933e-4124-9c60-4f9cb28600cf.png\"><figcaption style=\"text-align: center;\"><em>USDC versus USDT daily transfer volume. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>In other words, USDC users engage in relatively higher capital transfers compared to USDT users, suggesting that USDC is increasingly the stablecoin of choice among high net-worth entities including institutional whales, hedge funds, family offices, crypto exchanges, etc.<\/p>\n<p><strong><em>Related:\u00a082% of Tether reserves held in \u2018extremely liquid\u2019 assets, according to attestation<\/em><\/strong><\/p>\n<p>Furthermore, USDC leads USDT in terms of its supply weight across smart contracts as of Nov. 22. Notably, the former made up 33.75% of the total stablecoin supply locked across\u00a0staking pools. In comparison, USDT&#8217;s supply is around 12.50%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/38993c0d-2e01-4df1-b100-b8094f267954.png\"><figcaption style=\"text-align: center;\"><em>USDC versus USDC supply in smart contracts. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>But the higher daily transaction count versus USDC suggests that Tether is more likely used for retail trading and transfers such as remittances.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/2eb7bd0c-1f85-4163-8bee-9436b165db5a.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>USDC vs. USDT daily transaction count. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p> On the other hand, USDC <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears like a top stablecoin choice for tech-savvy institutional traders that lock their funds in staking contracts to earn yield. <\/p>\n<p>This is further reflected in USDC&#8217;s lower daily active addresses count of 40,245 versus USDT&#8217;s 73,000, as recorded on Nov. 21.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/685476a2-fe84-431d-bada-f7ce024e5688.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>USDC vs. USDT daily active addresses. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Additionally, crypto trading platforms implementing so-called &#8220;<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/rankings\/exchanges\/\">proof-of-reserves<\/a>&#8221; after the FTX collapse appear to hold more Tether over the USD Coin, further signaling that USDT is likely more popular among retail traders.<\/p>\n<p>These exchanges include Binance, KuCoin, BitFinex, ByBit, OKEx, and Huobi. Crypto.com&#8217;s reserves are the exception with more USDC than USDT.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/9b81c31c-9c6f-4a5a-97c5-c57f8278bb39.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Crypto.com&#8217;s proof of reserves. Source: CoinMarketCap.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Tether_market_cap_dips_after_FTX_collapse\"><\/span>Tether market cap dips after FTX collapse<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market capitalization of USDT dropped by nearly $4 billion after the FTX exchange collapse nearly two weeks ago.<\/p>\n<p>The reason may be due to Tether briefly veering off from its $1 valuation, hitting 96 cents on Nov. 10, after it froze $46 million worth of USDT tokens associated with FTX. <\/p>\n<p>Interestingly, the USDC market cap rose by nearly $2 billion after Nov. 10 when the FTX fiasco began.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/23f5f02d-c45f-4ea9-979f-84a483f9b48c.jpg\"><figcaption style=\"text-align: center;\"><em>USDT vs. USDC market cap performance in the last six months. Source: Messari<\/em><\/figcaption><\/figure>\n<p>Tether has a history of breaking its dollar peg during extreme market stress albeit to a lesser degree in recent years. <\/p>\n<p>For instance, the token dropped below 95 cents during the crypto market selloff in May, coinciding with a spike in USDC&#8217;s market cap. This suggests that some investors moved their capital from Tether to USD Coin as the former lost its dollar peg, as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/785b2d84-50e7-4b67-927c-27dcb1e36383.png\"><figcaption style=\"text-align: center;\"><em>USDT\/USDC three-day price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>However, Tether returned to dollar parity within a few days, asserting that the tokens in circulation are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tether.to\/en\/transparency\">backed<\/a>\u00a0100%\u00a0by reserves and pegged 1-to-1 with dollars.\u00a0<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/tether-vs-usd-coin-on-chain-data-reveals-two-very-different-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Tether vs. USD Coin on-chain data reveals two very different stablecoins &#8220; USD Coin (USDC), a stablecoin issued by the U.S.-based Circle Financials Ltd, is taking the lead over its top rival, Tether (USDT), when it comes to institutional adoption, according to on-chain data. USDC daily transfer volumes are higher The market capitalization of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":514753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvZDA1MzAyNGQtZTJhNC00ZjAxLThiMGMtYmM2NDczMmMxN2YxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75936,89665,76153,135234,75493,122378,73785,36041],"class_list":["post-514752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-circle","tag-digital-dollar","tag-dollar","tag-ftx","tag-stablecoin","tag-terra","tag-markets","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/514752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=514752"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/514752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/514753"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=514752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=514752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=514752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}