- Stablecoin USDC transfer volume 5x that of Tether, after FTX fallout and shutdown of DCG’s crypto wealth division.
- Crypto.com announced the delisting of Tether from its cryptocurrency exchange platform for customers in Canada.
- USDC has been the preferred choice for crypto users, over USDT, averaging over $12.5 billion more in transfer volume per day than Tether.
USD Coin (USDC), the second-largest stablecoin in the crypto market, witnessed a spike in its trade volume since October last year. Crypto.com announced the delisting of Tether (USDT) for Canadian customers whilst the stablecoin battled competitors for dominance as USDC takes over with rising trade volume.
Also read: Samuel Bankman-Fried asked Tether for billions, the stablecoin turned FTX down
USDC v. Tether, stablecoins battle for dominance as Crypto.com announces USDT delisting
USD Coin (USDC) and Tether (USDT) are the two largest stablecoins in the crypto ecosystem. Tether’s market capitalization is nearly 11 times that of USDC, at $29.4 billion. Despite the vast difference between the market cap of the two stablecoins USDC trade volume is nearly five times that of USDT since October 2022, based on data from Glassnode.
Two leading factors that contributed to USDT’s declining trade volume are Samuel Bankman-Fried’s FTX exchange’s collapse and the shutdown of the crypto wealth division at the Digital Currency Group. Tether’s market share in daily stablecoin transactions dwindled as users preferred USDC over the past three months.
Based on data from the crypto intelligence tracker, USDC has been the preferred choice, clocking over $12.5 billion more in daily transfer volume than USDT.
USDT and USDC transfer volume since October 2022
Experts believe that USDC is preferred over Tether, because it is backed by cash or short-term United States Treasuries and its monthly audits are handled by global accounting firm Grant Thornton. Tether continues battling criticism for lack of a transparent auditing and reserves.
Tether adoption takes a hit with Crypto.com’s announcement
Tether was further hit by the news Crypto.com, a cryptocurrency exchange platform, had announced that it will no longer facilitate transactions involving the stablecoin in Canada. The exchange’s plan is to delist the stablecoin as it fails to meet regulatory requirements of the region.
In accordance with instructions from the Ontario Securities Commission (OSC), USDT has been delisted for Canadian users on Crypto.com’s exchange platform. As part of the exchange’s pre-registration undertaking for a restricted dealer license, Tether and transactions involving the stablecoin are now unavailable for Canadian traders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
LUNC trends among traders alongside Dollar pegged stablecoin USTC, recovery likely
Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders.
LooksRare price recovery has wings and could double again as profit-hungry investors migrate from BLUR
After Blur’s 300% rally, the next NFT token that has grabbed traders’ attention seems to be LooksRare’s LOOKS altcoin. LOOKS price has rallied 12% in the last nine hours and shows promising signs of continuing this uptrend.
Dogecoin price might recover losses if volume picks up
Dogecoin wallet addresses with a non-zero balance climbed to 5.11 million. DOGE active addresses, and volume increased alongside price gains, supporting a bullish outlook.
Bitcoin price sees flat performance as correlation with equities is on the rise
Bitcoin price performance turned flat in the last two weeks as BTC entered a tight correlation with equities. BTC valuation model reveals Bitcoin price is unlikely to drop below $35,000 apart from short-term volatility.
Three key BTC accumulation levels before ETF approval in January 2024
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.