USDC transfer volume hit 5X USDT's in fallout from FTX collapse

Stablecoin USD Coin (USDC) has grown successful popularity since the illness of FTX and present often reaches regular transportation volumes 4 to 5 times that recorded by large rival Tether (USDT) according to information from blockchain analytics steadfast Glassnode.

That’s contempt the marketplace headdress of USDT being $23 cardinal greater than USDC. As of Jan. 10, the quality was successful USDC’s favour by a borderline of 4 and a fractional times.

Both stablecoins recorded surges successful transportation volumes pursuing an infamous tweet from Binance CEO Changpeng Zhao connected Nov. 6 announcing Binance would liquidate its full FTX Token (FTT) holdings. FTX went into bankruptcy soon after.

Since then, USDC has been the preferred prime for crypto users averaging implicit $12.5 cardinal much successful transportation measurement compared to USDT per time according to Glassnode data.

Total transportation volumes for USDC (In blue) and USDT (In green) from Oct. 8 to Jan. 10. Source: Glassnode.

While each of the stablecoins is designed to commercialized arsenic adjacent to 1 U.S. dollar arsenic imaginable and is backed by reserves held by its issuers, USDC is regarded by some successful the crypto assemblage arsenic a perchance safer option.

Supporters constituent to USDC’s assets, which are backed by currency oregon short-term U.S. treasuries and its monthly audits by planetary accounting steadfast Grant Thornton.

Tether has faced disapproval implicit a fig of years for not providing a due audit and for being little transparent astir its reserves.

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The institution down USDT was fined $41 cardinal successful Oct. 2021 by the Commodity Futures Trading Commission, which accused it of lone holding capable reserves 27.6% of the clip betwixt 2016 and 2018 contempt claiming its tokens were afloat backed by fiat currencies.

Tether has been reducing the commercial insubstantial backing its issued tokens successful favour of safer alternatives, with the latest plus breakdown connected Nov. 10 showing that astir $46 cardinal of its reserves dwell of cash, slope deposits and U.S. treasuries.

Related: Crypto.com delists USDT for Canadian users pursuing OSC ban

USDT concisely mislaid its peg to the U.S. dollar pursuing the FTX illness amid fears it was exposed to Alameda Research and FTX, which Tether denied.

On-chain grounds suggests the 2 firms were attempting to abbreviated the stablecoin.

USDT had been signaling transportation volumes overmuch higher than USDCs up until May 2021, aft Tether had increased the proviso of the token from $8.79 cardinal to $61.82 cardinal implicit the past year, representing an summation of 603%.

Market headdress of USDT from May 2018 to Jan. 2022. Source: TradingView

Despite the consequent alteration successful user preferences, Tether had referred to the maturation successful marketplace capitalization arsenic an indication of “the market’s continued spot and assurance successful Tether,” and noted each token tin beryllium redeemed for U.S. dollars connected a 1:1 basis.