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As total supply reaches 55.9B, USDC’s “actual volume” flips Tether on Ethereum

The fact that USDC’s real volume has roughly twice that of USDT over the past 24 hours, at least on the Ethereum network, may be another indication that the top stablecoin’s hegemony is waning.

On Tuesday, when USD Coin’s daily ‘real volume’ on the Ethereum network doubled that of Tether’s USDT, it began to challenge Tether for the title of top stablecoin in the cryptocurrency world.

Circle’s USDC hit $1.1 billion in daily real volume on the Ethereum network, which was double USDT’s actual volume of $579 million, according to crypto market analytics tool Messari.

Messari’s actual volume metric comes solely from exchanges that it believes have large and legitimate crypto trading volumes.

Since reaching an all-time high on May 11, the number of Tether coins in circulation has decreased steadily, falling by about 20% from 83.1 billion to a low of 67.9 billion.

USDC supply is increasing

On the other hand, USDC’s supply has grown by 13% to 55.9 billion since May 11. The dominance of Tether in the stablecoin market may come to an end if current trends hold.

The failure of layer-1 blockchain Terra, as well as the possibility of contagion from the failure of crypto lending platform Celsius, has sparked investor scepticism. It has been exacerbated by a recent market meltdown. In the wake, Tether redemptions have considerably increased, causing a decrease in supply.

The recent cryptocurrency market catastrophes involving Terra and Celsius will not have any effect on Tether’s reserves, the company said on June 13 in an effort to boost confidence in its stablecoin. Despite this, it seems like investors are moving to USDC.

Of course, Messari’s real volume metric does not provide a complete picture. According to CoinGecko, USDT continues to have the most daily volume across all blockchains and exchanges, at $44 billion compared to USDC’s $5 billion.

Tether CTO Paolo Ardoino stated to Euromoney on June 15 that his company intends to seek a proper audit from a top-12 auditing firm in order to address the ongoing redemptions and questions about the make-up of its reserves. Ardoino stated that while he would prefer one of the top four firms to conduct the audit, “the big four are a bit more wary about delivering a full suit when the rules are not clear” with regard to stablecoins.

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