Stablecoins

USDC vs USDT: This metric could sway investors in favor of…

Regulatory issues may have played a key role in determining which side whales and institutions would sway in the USDT vs. USDC battle for dominance. As such, USDC wins in terms of transaction volume. But there’s more to this than just volume.

Published

1 year ago

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  • USDC takes the cake as far as institutional adoption goes.
  • USDT is the preferred option for the retail segment. 

Imagine how life in the crypto world would be if there were no stablecoins. Fortunately, there are a variety of them including USDT and USDC which are the top crème of stablecoins. But have you ever wondered which one is better than the other?

IntoTheBlock recently revealed a breakdown of the key differences that may help traders choose between USDT vs. USDC. According to the analysis, both stablecoins have so far managed to hold their dollar peg but have at various points deviated. This is because of market factors that force the stablecoins away from their pegs.

According to the analysis, USDC takes the cake as far as transaction size is concerned compared to its counterpart. This is largely because institutional investors and whales prefer to use USDC. A potential reason could be regulatory standings in the U.S. Circle, the company behind USDC is allowed to operate in 49 states in the U.S. Meanwhile, Tether was banned in New York in 2021.

Regulatory issues may have played a key role in determining which side whales and institutions would sway in the USDT vs. USDC battle for dominance. As such, USDC wins in terms of transaction volume. USDT wins in terms of adoption. There are more addresses currently holding USDT than those holding USDC.

USDT beats USDC in terms of adoption

Glassnode’s latest address data revealed that USDT currently has over 31.4 million addresses. This is roughly three times more than the total number of USDC addresses which amounted to 11.4 million.

Source: Glassnode

In other words, USDT is the more preferred stablecoin in the retail segment. Because of this, it also wins as far as the daily transaction count is concerned. But does that mean traders starting out should have a preference for either of the two?

Despite their differences, the USDT vs. USDC battle does not necessarily yield a clear-cut winner. One could argue that USDC is better because of institutional preference. On the other hand, USDT’s retail dominance is certainly a statement in itself.

There is no distinct difference and it might come down to personal preference. Nevertheless, there is one major observation to consider. USDT’s marketcap has been on an upward trajectory in the last six months and at press time, stood at $83.3 billion. Meanwhile, USDC’s marketcap has been falling and was at $27.5 billion.

Source: Glassnode

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