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The competition for dominance among stablecoins is intense, with USD Coin (USDC) and Tether (USDT) standing out as two significant players. Recent analysis from the market intelligence platform IntoTheBlock provides insights into the distinct preferences of institutional stablecoin investors, presenting a detailed comparison of metrics related to these notable contenders.
Comparing the Metrics:
The competition begins with the total number of addresses, where USDT leads with a notable 4.1 million addresses, in contrast to USDC’s 1.7 million, underscoring the former’s higher level of adoption.
When examining active addresses, the advantage again shifts to USDT. The term “active addresses” refers to the total addresses participating in transactional activities on the respective blockchain. As an indicator of unique stablecoin users, USDT demonstrates nearly four times the user activity compared to USD Coin.
With a larger user base, the volume of transactions involving USDT naturally increases. However, the dynamics of transaction volume change when analyzing the actual token transfers. Interestingly, while Tether experiences approximately three times the daily transaction count of USD Coin, the latter excels in transaction volume. USD Coin records a volume of 5.67 billion, exceeding USDT’s 4.5 billion. This notable shift reveals an intriguing dimension.
Unveiling Transaction Size and Wallet Balances:
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This intriguing dimension lies in the average transaction size. USD Coin stands out, with the average transaction amounting to around $140,000 worth of tokens. In comparison, USDT transactions average a lower figure of $42,500. The data illustrates a clear trend – larger transactions appear to favor USD Coin.
Examining wallet balances, the difference persists. The average balance for USDC wallets exceeds that of USDT. IntoTheBlock interprets these discrepancies to imply that USD Coin is preferred by institutional investors and larger traders, while USDT is more aligned with the retail user demographic.
The Market Cap Perspective:
USDT asserts its leadership in terms of market capitalization. As the third-largest cryptocurrency in the market, following Bitcoin (BTC) and Ethereum (ETH), USDT demonstrates its extensive popularity. USDC ranks sixth in the market cap hierarchy, trailing behind BNB (BNB) and XRP (XRP).
The Implications:
While USD Coin seems to attract a concentration of significant investors and institutions, Tether remains the more popular and widely accepted stablecoin. As the stablecoin landscape evolves, the rivalry between these two giants could influence the market, introducing new dynamics in the cryptocurrency sector.
As the market continues to experience fluctuations, Bitcoin’s recent 2% increase, trading around $29,900, reflects the ongoing momentum in the cryptocurrency space.
The post USDC Vs USDT: Which Stable Do Institutional Traders Prefer? appeared first on BitcoinWorld.
