• USDC has more transfer volume than USDT, according to Glassnode data.
• After the FTX collapse, USDC’s exchange balance has grown and is now approaching $5 billion.
• The disparity between USDC and USDT transfer volume was not always like this, with USDT’s volume outperforming USDC in 2020 and 2021.
After the collapse of FTX back in 2022, investors have been increasingly wary of centralized crypto entities and have preferred to invest in Circle’s USD Coin (USDC) over Tether’s USDT. Data from Glassnode shows that USDC’s transfer volume is currently at $15 billion, while USDT’s transfer volume stands at $3 billion, a difference of $7 trillion.
The disparity between USDC and USDT’s transfer volume was not always so great. In fact, during 2020 and early 2021, USDT’s transfer volume was higher than USDC’s. This changed in 2022, when the USDT was subject to increased regulatory scrutiny due to concerns about its reserves and the collapse of Terra’s LUNA, which sparked fears that the stablecoin could lose its Dollar peg.
The USDC on exchanges has grown since the FTX collapse and is now approaching $5 billion. This suggests that USDC is enjoying more adoption post-FTX. Investors may be more confident in investing in USDC as it is backed by Circle, a well-established financial services company, and its reserves are regularly audited by Grant Thornton.
It is clear that USDC is becoming a more popular choice for investors who want to stay on the safe side while investing in cryptocurrency. This is especially true with the increased regulatory scrutiny that USDT is facing. As the dust settles, it remains to be seen which stablecoin will come out on top.