USDC volume overtakes Tether on Ethereum for first time

What

Over the last 24 hours or so, volumes for USDC traded on the Ethereum network have hit $55.9 billion — almost double the volume seen by the world’s largest stablecoin, Tether.

Why

USDC, backed by Circle, is regarded as a secure stablecoin thanks to its open and transparent auditing processes. In the aftermath of the Terra stablecoin collapse and questions remaining over Tether’s dollar backing, investors may be seeking a more secure stablecoin to keep their capital safe

What next

Tether’s market cap has fallen by 19% since its all-time high in May at $83 billion. Meanwhile, USDC has seen 5% gains, hitting a market cap of $56 billion

The story

A spokesperson for Tether pointed out that in the last 24 hours, Tether has seen $48 billion of trading volume compared to USDC’s $5 billion — suggesting that this showed Tether’s resilience and ability to handle cash withdrawals.

“Rather than catering to the traditional banking industry, Tether is focused on being the most used currency for peer-to-peer exchanges, remittances, a tool of freedom and inflation hedge for developing countries. This is why, while Tether’s market cap has decreased due to the billions of cash redemptions that we’ve effortlessly facilitated over the past several weeks, Tether’s 24 [hour] trading volume remains roughly 10x that of its closest competitor.”

To learn more about USDC, check out our guide to tell you all you need to know