A New Challenger Approaches
In a thrilling turn of events in the cryptocurrency arena, USD Coin (USDC) is looking to dethrone Tether (USDT) from its long-standing position as the king of stablecoins. Imagine a dramatic showdown on a wrestling mat, only instead of spandex and bodyslams, it’s all about digital coins and trading volumes.
Record Breaking Volumes
On a fateful Tuesday, USDC notched an impressive $1.1 billion in daily real volume on the Ethereum network, a figure that elegantly doubled USDT’s humble $579 million. This exciting metric, dubbed ‘real volume,’ is brought to life by Messari — a tool that looks at exchanges it deems legitimate. So, think of it as the bouncer of crypto trading, letting in only the best of the best.
What’s Included in Real Volume?
Some of the heavyweight exchanges accounted for in this metric include Binance, Kraken, and Coinbase Pro. If you’re taking notes at home, that’s a guest list any crypto party would be proud of.
Battle of the Supplies
While USDC is breaking volume records, Tether is experiencing a rollercoaster ride of its own. After peaking at an astronomical 83.1 billion coins on May 11, Tether’s circulating supply has plummeted by nearly 20%. As of now, it’s resting at a little more than 67.9 billion. On the flip side, USDC is gaining ground, boosting its supply by about 13% since the same date, now standing at 55.9 billion.
The Ripple Effect of Market Turmoil
The crypto world hasn’t been the same since the dramatic collapse of the Terra blockchain and the recent chaos surrounding the lending platform Celsius. Investors are feeling skittish, which has led to a spike in redemptions for Tether. Imagine a yelled evacuation drill at a crowded music festival; everyone’s looking for the exit as panic sets in.
Tether’s Assurance
In an attempt to restore faith, Tether has been issuing statements like, “Relax, we’re fine!” But investors seem to be gravitating towards USDC, perhaps seeing it as the safer life raft in this stormy sea of uncertainty.
The Big Picture: A Matter of Volume
While Messari paints a pretty picture of USDC’s rise, there’s more lurking in the shadows. CoinGecko reveals that across all blockchains and exchanges, USDT still leads with a staggering daily volume of $44 billion compared to USDC’s modest $5 billion. That’s like showing up to a neighborhood potluck with a five-course meal while your neighbor brings just a bag of chips.
Market Manipulation Concerns
A Tether spokesperson has weighed in, asserting that Messari’s ‘real volume’ metric is misleading. It seems the discrepancies are due to potential wash trading practices, which has made Messari’s ‘real volume’ a bit of a hot potato in the crypto community. To keep clarity in the air, Tether’s CTO has announced plans for an audit, hoping to quell some of those skeptic vibes.
Conclusion: The Race is On
At the end of the day, the battle for the title of top stablecoin is heating up. With USDC gaining momentum and Tether scrambling to retain trust, everyone’s eyes are glued to the arena. Who will emerge victorious? Only time will tell. Grab your popcorn, folks; this is just the beginning!
