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Circle Internet Financial's stablecoin USDC has overtaken Tether's USDT as the market leader in terms of trading volume this year, according to data compiled by Visa Inc. in partnership with Allium Labs.
The adjusted stablecoin metric, which aims to reflect the state of the stablecoin market while minimizing potential distortions due to inorganic activity and artificial inflationary practices, shows USDC's growing market share since the start of 2024 .
Last week, USDC saw $456 billion in trading volume, compared to USDT's $89 billion, with USDC accounting for 50% of total trading since January.
This finding challenges the common perception that USDT is the industry's dominant stablecoin, which is based on its 68% share of coins in circulation compared to USDC's 20%, according to data from DefiLlama.
Noelle Acheson, author of the newsletter Crypto Is Macro Now, suggests the discrepancy may be explained by USDT being more widely held outside the United States as a dollar-based store of value , while USDC is used in the United States as a transaction currency.
Stablecoins, which aim to maintain a stable price consistent with a fiat currency, typically the US dollar, play a crucial role in the crypto ecosystem by helping traders move funds to and from tokens and facilitating payments to purposes such as cross-border remittances. .
These results follow Circle's involvement in last year's US banking crisis, which saw the total value of USDC in circulation fall from a peak of $56 billion to $23 billion in December 2023 after Circle reveals $3.3 billion disease exposure. intended for Silicon Valley Bank.
However, the value of USDC in circulation has since rebounded to $32.8 billion.
However, interpreting stablecoin transaction data can be difficult due to the different use cases and the possibility of transactions being initiated manually by end users or (programmatically) via bots, as Cuy explained Sheffield, head of crypto at Visa, in an article. recent blog.
Once cleaned of bot-related transactions, the total transfer volume in the 30 days to April 24 increased from $2.65 trillion to $265 billion, according to Cuy Sheffield, head of crypto at Visa.
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