USDC outperforms Tether for the first time in history

For many years now, in the stablecoin sector, Tether has been the undisputed leader. Most of the transactions carried out in stablecoin are made with this currency. However, it seems that this is about to change and the USD Coin (USDC) has become a clear contender.

A few years ago this might seem impossible, however, the reality is that other stablecoins are gaining more and more popularity. And that first place Tether (USDT) is in could be about to change.

USDC outperforms USDT on the Ethereum network

Recently USDC has achieved a great milestone and is surpassing USDT for the first time in the "total supply" according to Etherscan. The total supply that Tether has is $39.82 billion, while the USD Coin has a supply of $44.89 billion.

This data means that there is more USDC than USDT on the Ethereum network, however, it does not mean that this is the new dominant stablecoin in the market. But this is an important step on the way for USD Coin.

USDT has 4.39 million holders, this is the number of people who have the currency in their wallets, in addition, 137.80 million transactions have been made.

On the other hand, USDC has 1.34 million holders alone and 34.11 million transactions. In short, even though there are fewer USDC holders, they hold more tokens than USDT holders.

Additionally, we have that these two currencies are also present in other networks. And in these the Tether widely exceeds USDC, however, this is something very important to take into consideration and the reason why the USDT is still above.

Tether, a currency full of controversies

Even though Tether is the dominant stablecoin, keep in mind that there are a lot of controversies around it. And there are many around this currency due to different reasons. That is why its growth is not the same as it was a few years ago.

This coin has been talked about many times and that it is not backed by all the USDT it has issued. Although it has not been proven, the truth is the rumors are there and this is something that affects it.

This is completely different from USDC, which has regular audits and the amount of supply is guaranteed.

Bitcoin Crash May Have Benefited USDC

Another thing to mention about this is the recent drop in bitcoin. All those sales that were made had to go somewhere. Obviously it is not that easy to move billions of dollars of bitcoin investments to a bank account.

That is why it is a clear option to move all the money to another currency and stablecoins are a good alternative. And in fact, this is something that happens very frequently, since when the market is down, investors seek refuge in a stablecoin.

So it is possible that some of the money has moved into the USD Coin.

In the event that this is what has happened, it is to be expected that when bitcoin recovers, all that money that entered USDC will leave.

This would bring this coin back under Tether. However, we will have to wait for that to happen to really know if that is what has happened or not.