Real USDC Volume (TRV) declined in February as the BUSD metric rose 51% against the USDC.
February proved to be a difficult month for USDC, earning TRV approximately $49 billion. While that’s relatively high compared to other stablecoins, USDC and BUSD TRVs are down $1.2 trillion — 90% lower than January 2021 numbers.
USDC is still rising
However, the drop in real volume over the past month hasn’t had a major impact on demand for the stablecoin. Since last February, USDC’s TRV is up 23% to about $39.7 billion.
Real USDC Volume | Source: Messari
As USDC’s TRV falls, its daily high is still 11% above its February high of last year.
Last month, the daily high in TRV was $3.7 billion, compared to $3.3 billion in February 2021.
BUSD outperforms USDC
While USDC reached $49 billion in volume in February, BUSD recorded around $74 billion.
Unlike USDC, TRV is down 89% from January 2022, with BUSD at $682 billion. Its TRV is also down 25% on a monthly basis from last February’s $99 billion.
Real volume of BUSD | Source: Messari
Traders prefer BUSD?
USDT remains the top-performing stablecoin by market cap, holding the title of the second largest stablecoin by market cap at press time. However, since February, BUSD has been the clear favorite behind USDT – at least according to TRV metrics.
In January, USDC was up 0.91% against BUSD and had 51% more real volume than USDC.
But why?
The number of trades and average transaction volume can be considered as important opposing metrics that affect real volume. According to calculations, the total number of USDC transactions in February 2022 was over 1.1 million, while BUSD had more than 22,000 transactions.
If the number of USDC transactions is larger than BUSD, then why is the real volume of BUSD larger than USDC by 51%?
Although USDC recorded a total of 4,900% more transactions than BUSD in February, their average transaction value was relatively lower.
Looking back on February 24th, both stablecoins recorded a high number of transactions in one day, which coincided with Russia’s decision to launch an unprovoked invasion of Ukraine, causing the price of the crypto market to plummet everywhere.
The bearish outlook has led to a surge in demand for stablecoins. At the end of the day, the number of USDC and BUSD transactions was 74,568 and 1,388, respectively. Accordingly, this gives USDC an average daily trade value of $150,000.
Average USDC Transfer Value | Source: Messari
On the other hand, the average number of trades during the day is $1.01 million for BUSD.
Average transfer value from BUSD | Source: Messari
Since the actual volume represents the cumulative daily trading volume, the average number of trades is formed. This would explain why USDC’s real volume has decreased even though it has a higher number of transactions.
As uncertainty continues surrounding ongoing events in the Russia-Ukraine conflict, March will see more impressive TRV numbers.
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Minh Anh
According to beincrypto
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