On the Ethereum network at least, the real volume of USDC has nearly doubled that of USDT in the past 24 hours, which could be another sign that the dominance of the top stablecoin is coming to an end.
According to crypto market data tool Messari, Circle’s USDC saw $1.1 billion in daily real volume on the Ethereum network on June 21, more than double USDT’s real volume of $579 million.
Messari’s real volume metric is calculated by only aggregating data from exchanges that it believes have “substantial and legitimate crypto trading volume” and therefore differ from the “total volume” metric that usual.
Exchanges included in the Messari’s real volume metric include Binance, Bitfinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken, Poloniex, and those tracked on OnChainFX.
Tether’s circulating supply has continued to decline since its all-time high on May 11, dropping nearly 20% from 83.1 billion USDT in circulation to an 8-month low of 67.9 billion USDT as of the time of writing.
USDC, on the other hand, has seen a 13% increase in supply since May 11 to $55.9 billion. If the trends continue, Tether could lose its dominance in the stablecoin space.
The collapse of the Terra Layer 1 blockchain and the potential for contagion from the collapse of crypto lending platform Celsius have caused suspicion among investors, made worse by the collapse of the market in recent weeks. The number of buybacks in Tether has since increased dramatically, resulting in a reduced supply.
Tether has been trying to bolster confidence in its stablecoin – including stating on June 13 that the ongoing crypto market disasters involving Terra and Celsius will not have any impact to its reserves. Even so, investors seem to be turning to USDC.
Of course, Messari’s real volume metric doesn’t tell the whole story. Across all blockchains and exchanges, CoinGecko shows USDT daily volume still topping the charts at $44 billion versus USDC’s $5 billion.
However, the actual volume is unknown as USDT is used in wash trading to increase volume for coins or exchanges.
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