Demand Against USDC Stablecoins Rising, Ready For USDT Singi?

The USDC stablecoin has increased demand. (Photo; Doc. CryptoTimes)

JAKARTA The USDC stablecoin Circle has experienced a significant increase in demand from crypto users. This condition is inversely proportional to the USDC where in 2022 it experienced rejection from a number of crypto exchanges.

Based on data information from blockchain analyst Glassnode, USDC's daily transfer volume has increased by four or five times from its competitor, Tether USDT. Despite USDT's position, which is still the largest stablecoin leader by market cap.

Based on the data, USDC has a transfer volume of 15 billion US dollars compared to USDT which amounted to USD 3 billion US dollars. Overall, the total USDC transfer volume is 7 trillion US dollars more than USDT.

USDC has attracted the attention of investors amid the decline in the crypto market. Even so, in times of bearish market, investors usually choose stablecoins to save their funds. Apart from being a savior in the middle of the bear market, stablecoins are also referred to as safe cryptocurrencies because their prices are stable following the movement of fiat money.

Many USDC loyalists always want to show that USDC assets are backed by real or short-term US treasury. They also talk about how Circle ensures to conduct a monthly audit and is usually transparent with the entire process as reported by CoinSpeaker.

While its competitor, Tether USDT has received negative sentiment several times from a number of media regarding USDT's reserve funds. Coupled with the Canadian regulator's decision to ban the Tether stablecoin trade. Canadian and Coinsquare branch Binance included two exchanges that decided to remove USDT trading.

On the other hand, Tether, the company behind USDT, was fined $41 million in October 2021. At that time, the CFTC Commodity Futures Trading Commission accused him of not having sufficient reserves for nearly 72 percent of the two years.

In addition, many investors also have concerns that USDT has exposure to FTX and Alameda. This comes as USDT briefly depreciated against the US dollar shortly after the FTX's collapse. However, Tether has denied the allegations and said it has no exposure to the bankrupt crypto exchange company.