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USDC vs USDT: Which Should Investors Prefer?

  • Both stable cryptocurrencies have managed to maintain their connection to the dollar so far, but have deviated at various points. This is due to market factors that have caused stable cryptocurrencies to deviate from their pegs.
  • According to the analysis, USDC stands out in terms of transaction size compared to its counterpart. This is largely due to the preference of institutional investors and whales to use USDC.
  • USDT is the preferred stable cryptocurrency in the retail segment. Therefore, it also wins in terms of daily transaction volume.

Two friends, two crazy bullets; What are the differences between USDT and USDC? USDT surpasses USDC in terms of adoption, but USDC has more institutional power!

Important Differences Between USDC and USDT

usdt-usdc

Imagine what life would be like in the crypto world without stable cryptocurrencies… Fortunately, there are various options such as USDT and USDC, which are among the top stable cryptocurrencies.

IntoTheBlock has explained the key differences that can help choose between USDT and USDC. According to the analysis, both stable cryptocurrencies have managed to maintain their connection to the dollar so far, but have deviated at various points. This is due to market factors that have caused stable cryptocurrencies to deviate from their pegs.

tether-vs-usd-coin

According to the analysis, USDC stands out in terms of transaction size compared to its counterpart. This is largely due to the preference of institutional investors and whales to use USDC. The potential reason for this situation could be the regulatory stance in the US. Circle, the company behind USDC, is allowed to operate in 49 states of the US, while Tether (USDT) was banned in New York in 2021.

Regulatory issues may have played an important role in determining which side whales and institutions would prefer in the USDT vs. USDC superiority battle. Therefore, while USDC wins in terms of transaction volume, USDT wins in terms of adoption. Currently, there are more addresses holding USDT than addresses holding USDC.

USDT surpasses USDC in terms of adoption

The latest address data from Glassnode reveals that USDT currently has over 31.4 million addresses. This is approximately three times the total number of USDC addresses, which is 11.4 million.

usdt-total-addresses-usdc-total-addresses

In other words, USDT is the preferred stable cryptocurrency in the retail segment. Therefore, it also wins in terms of daily transaction volume. But does this mean that beginner traders should prefer one over the other?

Despite their differences, the USDT vs. USDC battle does not necessarily reveal a definite winner. Some may argue that USDC is better due to institutional preference. On the other hand, the superiority of USDT in the retail sector is definitely a unique stance.

There is no clear difference and it may depend on personal preference. However, there is an important observation to consider. The market value of USDT has been on the rise in the past six months and is currently at $83.3 billion. On the other hand, the market value of USDC is declining and was at $27.5 billion.

usdt-market-cap-usdc-market-cap

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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