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USDC Leads Institutional Adoption Over Tether

USD Coin (USDC) surpasses Tether (USDT) in institutional adoption with higher daily transfer values on the Ethereum blockchain.
Published on 2022-11-23

USDC Outpaces USDT in Institutional Adoption

USD Coin (USDC), a stablecoin issued by Circle Financials Ltd, is gaining traction over its major competitor, Tether (USDT), particularly in institutional circles. On-chain data highlights USDC's growing dominance despite having a lower market capitalization compared to USDT.

Market Capitalization and Transfer Volume

Currently, the market capitalization of USDC stands at approximately $44 billion, whereas USDT holds a larger market value of $65.42 billion. However, USDC demonstrates a significant edge in daily transfer value on the Ethereum blockchain, consistently outperforming USDT throughout 2022. This trend indicates USDC's increasing preference among large-scale investors and institutions.

USDC's Performance on the Ethereum Blockchain

USDC's superior daily transfer volume on the Ethereum network suggests a robust institutional presence. The consistent usage reflects confidence in USDC's stability and reliability, making it a favored choice for transactions requiring swift and secure settlements.

Growing Institutional Trust in USDC

The preference for USDC over USDT among institutions may stem from USDC's approach to transparency and regulatory compliance. Circle Financials Ltd's efforts to maintain transparency and regulatory alignment could be key factors driving this trend, as institutions seek stablecoins that offer security and reliability.

Conclusion

USDC's ascendancy in institutional adoption, marked by higher transfer volumes on Ethereum, underscores its growing reputation as a stable and trusted digital asset. As USDC continues to attract interest from institutional investors, its role in the cryptocurrency market is likely to expand, potentially reshaping the dynamics between major stablecoins.

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