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Post the dramatic FTX collapse, USD Stablecoin (USDC) transfer has recorded a 5 times that of its rival stablecoin Tether (USDT). As per the blockchain analytics, Glassnode, USDC has been basking in popularity with its growing daily transfer volume.
In its on-chain 2022 report, Glassnode noted:
“USDC dominance peaked at 38% in June, but has since fallen to 31.3%, now accounting for $44.75B in value.”
The popularity of USDC surges even as the total market cap of USDT is $23 billion more than the former stablecoin. Stablecoins saw a huge spike in transfers after Binance CEO Changpeng Zhao tweeted that Binance would liquidate its FTX Token leading to FTX’s debacle.
USDC has emerged as a safer crypto after investors thronged to stablecoins following US’s second largest crypto exchange, FTX’s crash. Soon, USDC averaged over $12.5 billion more in transfer volume per day than USDT.
Another factor that led to growing preference for USDC, is the growing fear among investors around Tether being exposed to Alameda Research and FTX. The rumors, however, were later refuted by Tether.
As for Tether, it has been subjected to constant scrutiny for not being able to give a proper audit of its reserves. Recently, crypto application Crypto.com also decided to delist USDT for its Canadian customers citing regulatory norms Nevertheless, Tether’s rising market capitalization is seen by many as a sign of continued trust and confidence.
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