USDC Beats USDT In Transaction Volume By Over 400% – Details

Christian Encila

1 year ago

3 mins read

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Tether’s (USDT) apparently unbreakable rule as the king of stablecoins is challenged. Based on on-chain analytics from payments behemoth Visa, Circle’s USD Coin (USDC) has surprisedly outperformed Tether in April 2024 in terms of transaction volume.

This advancement represents a notable change in the scene of stablecoins. Although Tether has an astounding market capitalization of more than $110 billion, USDC, with its $33 billion value, has become the more often traded coin.

Visa’s data reveals USDC processed a whopping $456 billion – which is 400% more – in transaction volume last week, compared to Tether’s $89 billion.

Stablecoin transactions. Source: Visa

USDC: A Slow And Steady Climb

This triumph did not happen over night. Since late 2023, USDC has been progressively undermining Tether’s supremacy. With 145 million USDC compared to Tether’s 127 million, Visa’s data shows USDC’s monthly transactions exceeded Tether’s for the first time in December 2023. The April numbers confirm this trend: USDC counts in at over 166 million transactions against Tether’s about 164 million.

Source: Visa

Experts attribute numerous elements behind USDC’s ascent. Users towards USDC, thought to be a better controlled and auditable stablecoin, may be driven by growing regulatory scrutiny of Tether’s reserves and continuous worries about its openness.

Furthermore, USDC’s cooperation with Visa directly could be involved. In April Visa debuted a stablecoin analytics dashboard with USDC prominently displayed among other main stablecoins. This more prominence could be drawing fresh platform users.

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

Tether Still Holds The Crown (For Now)

Tether is clearly the king in terms of market capitalization even with USDC’s amazing spike in transaction volume. Its $110 billion indicates a far higher overall value of outstanding coins than USDC’s $33 billion. Though they aren’t actively trading it as often, this implies Tether is still the favored store of wealth for many crypto investors.

Tether also boasts a far bigger user base. Tether observed activity from over 34 million distinct wallets compared to USDC’s 9.57 million but USDC handled more transactions in April. This would suggest that USDC serves a more active trading community whereas Tether is used for bigger transactions or by a more varied spectrum of people.

The Future Of Stablecoins: A Two-Horse Race?

USDC and Tether are still engaged in a far from finished conflict. Recent transaction volume success by USDC shows its increasing impact inside the crypto community. Tether’s established user base and market capitalization dominance, however, point to it won’t be readily challenged.

The future of stablecoins will probably be shaped in great part by changing regulatory environment and user tastes for openness and security. Remains to be seen whether USDC can sustain its momentum and challenge Tether’s market value advantage or if Tether can recover its transaction volume lead.

Featured image from Tap Global, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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