Tether vs USD Coin on-chain data reveals two very different stablecoins
Tether's market cap plummeted amid FTX fiasco while USD coin supply increased by $2 billion.
Market analysis
USD Coin (USDC), a stablecoin issued by U.S.-based Circle Financials Ltd, leads its main rival, Tether (USDT), in institutional adoption, according to on-chain data.
> USDC daily transfer volumes are higherThe market capitalization of USDC tokens in circulation is approximately $44 billion compared to $65.42 billion for USDT. However, the daily transfer value of USDC on the Ethereum blockchain has been consistently higher than that of USDT throughout 2022, according to data from Glassnode.
For example, as of November 22, USDC's daily transfer was around $14 billion, compared to USDT's $5 billion.
USDC compared to daily USDT transfer volume. Source: GlassnodeIn other words, USDC users engage in relatively higher capital transfers than USDT users, suggesting that the 'USDC is increasingly the stablecoin of choice among high net worth entities, including institutional whales, hedge funds, family offices, crypto exchanges, etc.
Related: 82% of Tether Reserves Held in 'Extremely Liquid' Assets, Attestation Says
In addition, USDC leads USDT in terms of supply weight in smart contracts as of November 22. Notably, the former accounted for 33.75% of the total supply of stablecoins locked in stake pools. In comparison, the USDT bid is around 12.50%.
Tether's market cap plummeted amid FTX fiasco while USD coin supply increased by $2 billion.
Market analysis
USD Coin (USDC), a stablecoin issued by U.S.-based Circle Financials Ltd, leads its main rival, Tether (USDT), in institutional adoption, according to on-chain data.
> USDC daily transfer volumes are higherThe market capitalization of USDC tokens in circulation is approximately $44 billion compared to $65.42 billion for USDT. However, the daily transfer value of USDC on the Ethereum blockchain has been consistently higher than that of USDT throughout 2022, according to data from Glassnode.
For example, as of November 22, USDC's daily transfer was around $14 billion, compared to USDT's $5 billion.
USDC compared to daily USDT transfer volume. Source: GlassnodeIn other words, USDC users engage in relatively higher capital transfers than USDT users, suggesting that the 'USDC is increasingly the stablecoin of choice among high net worth entities, including institutional whales, hedge funds, family offices, crypto exchanges, etc.
Related: 82% of Tether Reserves Held in 'Extremely Liquid' Assets, Attestation Says
In addition, USDC leads USDT in terms of supply weight in smart contracts as of November 22. Notably, the former accounted for 33.75% of the total supply of stablecoins locked in stake pools. In comparison, the USDT bid is around 12.50%.
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