Circle's stablecoin USD Coin (USDC) has surpassed Tether's USDT by the number of daily transactions on the Ethereum Blockchain, according to data shared by Alex Svanevik, CEO of on-chain data center Nansen.
Data shared by Nansen CEO Alex Svanevik shows that USDC has surpassed USDT in terms of daily transactions on the Ethereum Blockchain. This means that market participants predominantly use USDC, the 2nd largest stablecoin on the Ethereum network.
Circle's dollar-pegged stablecoin has yet to surpass USDT in market cap. The two cryptocurrencies are currently worth $67.8 billion and $55.5 billion, respectively. However, USDT has steadily lost its market value after a series of stablecoin crashes over the past few weeks. USDT also has a significant lead in daily trading volume above USDC ($55 billion and $5.7 billion, respectively) as it continues to be the lifeblood of the cryptocurrency economy.
Tether, in its statement last week, announced that it was in no way affected by the extremely difficult crypto money company Celsius, which is claimed to be on the verge of bankruptcy. The company also denied rumors that it held Chinese commercial papers, which are trading at a high negative premium. Speaking to The New York Times recently, Tether CTO Paolo Ardoino said the company would be willing to use its USDTs down to their last penny.
USDT faced significant pressure in May after the collapse of the largest algorithmic stablecoin TerraUSD (UST) entered the dollar pegged for a short time. USDT remains vulnerable to USDC due to pressure from critics, industry experts, regulators, and economists, who argue that there is not enough transparency in maintaining the dollar peg. USDC has increased its market value against USDT especially in the last month and according to many, it may undermine USDT in the near term.
Other stablecoins are also struggling to take a bigger share of the market. Binance USD (BUSD), the stablecoin of the world's largest crypto exchange Binance, is one of them. BUSD is the 3rd largest stablecoin with a market cap of $17.1 billion.