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USD Coin (USDC), one of the popular stablecoins in the market, is competing well against Tether (USDT). Data from Messari shows that the stablecoin’s daily real volumes on the Ethereum network had doubled USDT volumes.
USDC surpasses USDT real volumes
The Messari report showed that on June 21, the daily real volumes on Ethereum hit $1.1 billion. This was double the USDT volumes that came in at $579 million. The growth in USDC comes amid growing FUD surrounding the Tether stablecoin.
The real volume data is a metric calculated by bringing together the data collected from exchanges. The company noted that this metric has “significant and legitimate crypto trading volumes. Therefore these volumes were different from the total trading volumes value.
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The Messari data garnered information from leading cryptocurrency exchanges such as Binance, Bitfinex, Bitflyer, Bittrex, Coinbase Pro, Kraken, Gemini, Bitstamp, itBit, Poloniex, and other exchanges tracked through OnChainFX.
USDC supply is also gaining
The volume is not the only positive metric surrounding the USDC stablecoin. The stablecoin’s supply has also been on a notable uptrend. On the other hand, USDT’s circulating supply has also steadily declined from its record-high levels created on May 11.
The USDT circulating supply has dropped by around 20%, from 83.1 billion coins in circulation to around 67.9 billion in circulation. USDC’s circulating supply has also fallen to an eight-month low.
Conversely, the USDC stablecoin supply has increased by 13% since May 11. The coin’s supply currently sits at 55.9 billion, following a huge inflow of funds into the stablecoin. If this trend continues, USDC could threaten the dominance of USDT in the stablecoin market.
Tether has faced a lot of FUD in recent weeks following the uncertainty around the crypto space. The collapse of the Terra DeFi network and the Celsius Network was a catalyst to the USDT uncertainty. Redemptions in Tether have increased significantly following the collapse of the two companies. The growing doubt among investors following the depegging of several stablecoins has also affected USDT.
Tether has attempted to boost confidence in the stablecoin. On June 13, the company assured investors its reserves were unaffected by the ongoing crash in the cryptocurrency market and the issues with Celsius and Terra. Despite these assurances, investors are still opting to transact with USDC.
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