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USDT takes this long stride to win the stablecoin battle with USDC
The battle between the top two stablecoins continues to see new feuds over land on a monthly basis, each taking turns to strategize their winning plays.
So here’s the latest fact check on the current state of this ever-lasting competition.
Placing my bets on…
The total market capitalization of stablecoins stood at about $153.8 billion, with a trading volume of $56 billion in the past 24 hours.
Mainly the top two stablecoins, Tether’s USDT and Circle’s USDC made headlines. However, the leading stablecoin has suffered
a lot over the last few months post the UST fiasco.Consider this for instance. Tether [USDT] had a market share of 47.5% at the beginning of 2022, while Circle’s USDC had 25.8%.
But Tether’s popularity has decreased since. Thus, reducing its market share to less than 40%. On the other hand, Circle’s stablecoin has continued to narrate impressive stories since the beginning of this year.
But it looks like the tables have turned. At press time, the market value of USDT stood at 67.5 billion, accounting for 43.9%; the 24-hour trading volume was 45.4 billion, accounting for 81%. And, it maintained the $1 peg despite hiccups.
Source: CoinMarketCap
In fact, in the past 30 days, the market value of USDT has increased by 2.6%, while the market value of USDC has decreased by 2%.
Meanwhile, the ratio of Tether on exchanges went up by 20% in the last three months, according to Santiment data. The ratio went from 19.7% on 9 May to 42% as of 14 August.
Ergo, marking the first time USDT supply on exchanges increased to over 42% since April 2020.
Needless to say, compiling such datasets would directly affect USDT’s trading volume as well. This was exactly the case here as trading volume surged to the 56 billion landmark.
Source: Santiment
In fact, sharks (holding between 10k and 100k) showed intense accumulation
in the last two to three weeks.Nevertheless, USDC did, indeed, showcase some promising stats to support the aforementioned prediction. For instance, a month ago, it crossed Tether’s USDT by the number of daily transactions on the Ethereum blockchain.
Furthermore, Circle’s coin remains the most-used stablecoin in the transferring volume aspect. As per Dune analytics, USDC holds a share of 55.5% on this front. Tether only has a share of 18%.
