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USDC's : Tether on ETH as the total supply reaches 55.9B

22-Jun-2022 By: Rohit Tripathi
USDC's : Tether on E

USDC's true volume swaps Tether on ETH 

as the total supply reaches 55.9B 

On Tuesday, when USD Coin's daily real volume' on the ETH network doubled that of Tether's USDT, it began to challenge Tether for the title of top stablecoin in the cryptocurrency world.

Circle's USDC had $1.1 billion in daily real volume on the Ethereum network on June 21, according to crypto market statistics tool Messari, which was more than twice USDT's actual volume of $579 million.

Messari's actual volume statistic, which varies from the more often seen "total volume" indicator, is produced by gathering data solely from exchanges that it believes have "large and genuine crypto trading volumes."

Binance, Bitfinex, Bitstamp, Bittrex, Coinbase Pro, Gemini, Kraken, Poloniex, and those monitored on OnChainFX are among the exchanges covered in Messari's Real Volume indicator.

USDC supply gaining ground

Since reaching an all-time high on May 11, the number of Tether coins in circulation has decreased steadily, falling by about 20% from 83.1 billion to a low of 67.9 billion as of the time of writing.

On the other hand, USDC's supply has grown by 13% to 55.9 billion since May 11. The dominance of Tether in the stablecoin market may come to an end if current trends hold.

Investor uncertainty has been exacerbated by a recent market meltdown as a result of the failure of layer-1 blockchain Terra and potential spillover effects from the collapse of crypto lending platform Celsius. In the wake, Tether redemptions have considerably increased, causing a decrease in supply.

The recent cryptocurrency market catastrophes involving Terra and Celsius will not have any effect on Tether's reserves, the company said on June 13 in an effort to boost trust in its stablecoin. Despite this, it seems like investors are moving to USDC.

Of course, Messari's actual volume measure does not provide a complete picture. CoinGabbar reveals that USDT has the highest daily volume of $44 billion, compared to USDC's $5 billion, across all blockchains and exchanges.

The imperfect actual volume metric was created because it was unclear how much of the volume was caused by USDT being used in wash trade to artificially raise the figures for coins or exchanges.

Tether CTO Paolo Ardoino stated to Euromoney on June 15 that his company intends to seek a full audit from a top-12 auditing firm in order to address the continuous redemptions and questions about the make-up of its reserves. Ardoino stated that while he would like one of the top four companies to do the audit, "the big four are a bit warier about delivering a complete suit when the regulations are not clear" with regard to stablecoins.

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