USDC Tether’s ‘real volume’ swings to Ethereum as total supply hits 55.9 billion

USD Coin is set to become the cryptosphere’s mainstay after its daily “real volume” on the Ethereum network doubled more than USDT Tether on Tuesday.

According to Messari cryptocurrency market data platform, USDC Circle posted an actual daily volume of $ 1.1 billion on the Ethereum network on June 21, double the actual volume of USDT (579 million dollars).

Messari’s actual volume metric is determined by compiling data from exchanges that claim Messari has a “significant and legitimate cryptocurrency trading volume” and thus differs from the most common “total volume” metric.

Exchanges included in Messari’s real-volume measurement include Binance, Bitfinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken, Poloniex, and those tracked on OnChainFX.

USDC bid wins pull

Supply in Tether circulation has been steadily falling since it was very high on May 11, falling from 83.1 billion tokens in circulation to 67.9 billion at the time of writing this report, a decrease of almost 20%.

In contrast, its supply at USDC has increased by 13% since May 11 to 55.9 billion. If the trends continue, it could spell the end of Tether’s dominance in the stablecoin space.

There is skepticism among investors about the collapse of the Terra blockchain 1 tier and the possible infection from the collapse of the Celsius cryptocurrency lending platform, which has been exacerbated by a decline in the market in recent weeks. Subsequent tether redemptions increased significantly, leading to a reduction in supply.

Tether has sought to restore confidence in its stables – including declaring on June 13 that its reserves will not be affected by the ongoing catastrophe in the cryptocurrency market involving Terra and Celsius. Despite this, investors seem to be migrating to USDC.

Of course, Messari’s actual volume measurement does not tell the whole story. Across all blockchain and exchanges, CoinGecko shows that the daily USDT volume remains at the top of the charts at $ 44 billion, compared to $ 5 billion USDC.

It is not clear, however, how much of this volume is due to the inflationary use of USDT in repurchase trades to exchange signals or numbers, which explains the imperfect measure of real volume.

Read also: Stablecoin Market Share Record suggests Crypto Rise: JPMorgan

To combat ongoing takeovers and doubts about the composition of its reserves, Tether’s technical director Paolo Ardoino told Euromoney on June 15 that his company plans to conduct a proper audit by a top 12 audit firm. of the four major firms to conduct the audit, Mr Ardoino said: “The big four are a little more careful about providing a complete mix when the rules are not clear,” on constables.