USDT (Tether has been the number one stablecoins since its launch as a cryptocurrency pegged to the US dollar. USDC follows closely as another cryptocurrency without volatility.
USDC is expected to have a bigger market cap than USDT in the coming months. This is due to greater compliance and transparency efforts. USDT has had issues since its launch among which is transparency.
In this post, we’ll see how USDC is about to flip USDT as the number one stablecoins. Before then, let’s know more about these stablecoins.
What are Stablecoins?
Stablecoins are the type of altcoins that help to correct the volatility in the price of other cryptocurrencies. They are crypto-equivalent to fiat currencies like US dollars.
Crypto investors who needed something that could reliably hold value over time without volatility and allow them to easily transfer that value invest in these tokens.
Stablecoins are useful for traders and investors in crypto trading. It is easier for them to move money in, out, and between crypto exchanges with Stablecoin, without waiting for banking procedures.
These stablecoins have made it easier for investors to hold a part of their crypto portfolio like cash. This makes it possible to readily purchase any coin at any time without depending on bank services.
Some of the top stablecoins in the crypto market today include USDT, BUSD, USDC, etc.
What is USDT?
Tether is a blockchain-based cryptocurrency that is backed by the U.S dollar. USDT is the trading symbol for Tether tokens.
It is the most popular form of altcoins called ”Stablecoins” due to the fact that its value is pegged to the U.S dollar. In simple terms, a U.S Tether token is $1 all time.
USDT like every other stablecoins is protected from price fluctuation of cryptocurrencies. This property makes USDT a safe haven for crypto investors.
Investors can park their portfolios in Tether without having to completely cash out into USD during the period of high volatility.
USDT also provides a simple way to transact a U.S. dollar equivalent between regions, countries and even continents via blockchain. This is without a third-party like banks and other financial institutions. Trading platforms such as Prestmit is one of the top sites to sell USDT in Nigeria.
What is USDC?
USDC is the trading symbol for the USD coin which is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis.
Initially launched in 2018, USDC’s mantra is “digital money for the digital age” . It is said to be designed for a world where cashless transactions are becoming more common.
USDC is created by two companies which are named ‘Circle‘ and the other ‘Coinbase‘. The former is a peer-to-peer payment services company while the later is a popular crypto exchange.
USDC is available for purchase on crypto exchanges not limited to Coinbase. It is no doubt one of the top cryptocurrency today.
USDT in the Crypto Market Today
Tether (USDT) is among the top cryptocurrency top and the most popular of all Stablecoins. USDT is ranked 3rd in the list of cryptocurrencies, only behind Bitcoin and Ethereum. It is the number one ranked Stablecoins in the crypto market by CoinMarketCap.
As a stablecoin, the price of USDT is always $1 and is not expected to change. USDT has a 24-hour trading volume of $48,905,776,408 USD.
USDT has a live market cap of $66,480,794,238 USD. It has a circulating supply of 66,476,525,455 USDT coins.
USDC in the Crypto Market Today
USD Coin is listed as the second stablecoin and the 4th among thousands of cryptocurrency by CoinMarketCap.
As a stablecoin pegged to the US dollar, the price of USDC is always $1 and is not expected to change. It has a 24-hour trading volume of $6,108,066,611 USD.
USDT has a live market cap of $54,294,813,102 USD. It has a circulating supply of 54,296,376,871 USDC coins.
Will USDC Flip USDT as Number One Stablecoin?
The second biggest stablecoin by market cap, USDC, is expected to overtake USDT, according to analysts.
The second biggest stablecoin by market cap, USDC, is expected to overtake USDT, according to analysts at Arcane Research.
The Glassnode chart below shows relatively parallel growth for both tokens from September 2020 onwards. This period was the run-up to the start of the last bull market, as Bitcoin re-reached the previous cycle peak of $20,000 in December 2020.
Although USDT’s market cap growth outpaced USDC at certain intervals, particularly between March 2021 and June 2021, USDT saw a sharp decline from May 2022 onwards. In contrast, USDC’s macro uptrend remains intact.
Considering USDC’s current growth rate of 70% and USDT’s trajectory of decline, analysts expect the “flippening” to occur as soon as October.
Since the Terra collapse in early May, USDT has suffered severe capital outflows as investors cashed out to safety during the market turmoil.
Tether’s market cap peaked at $83.2 billion on May 8, leading to two distinct drop-offs between May 11 and May 28, as well as between June 12 and June 22. This was when crypto lending platform, Celsius announced a pause on withdrawals at around the time of the second drop-off.
USDC is seen as a threat to USDT’s position because it is tagged a “safer” stablecoin offering. This is because it is transparent than Tether’s USDT. Recent criticisms of USDC prompted Jeremy Allaire, the CEO of issuing company Circle, to increase transparency by issuing regular monthly reserve reports starting from July 14.
Although USDC has been predicted to flip USDT in the coming months, only time will tell if it will really do.
Investors need to study both stablecoins, i.e. USDT and USDC before investing in them.
Why USDT is Still The Number One Stablecoin in 2022
Despite converging market caps, USDT trading volume still far exceeds that of USDC. In the last 24 hours, USDT had a trading volume of $66.4 billion, making it the most traded token — during peaks, the trading volume doubles that of second-placed Bitcoin.
On the other hand, USDC’s trading volume over the last 24 hours came in at $8.8 billion, or 13% of USDT.
Tether has launched stablecoins in other fiat currencies which include the Mexican Pesos, Chinese Yuan, Euros, and the Great British Pounds.
If you ever need to sell crypto assets such as USDT in Nigeria or Ghana, Prestmit is one of the best places to do so.
