The Battle of the Stablecoin Giants: USDT vs USDC

 The stablecoin market has grown rapidly in recent years, with two major players, Tether (USDT) and Circle's USDC, locked in fierce competition.

According to recent statistics, USDC has finally surpassed Tether in monthly transaction volume. Visa's on-chain analysis shows that USDC recorded 166.6 million transactions in April 2024, exceeding Tether's 163.6 million.

This is a continuation of the trend that has seen USDC steadily erode market share since late 2023. In December 2023, USDC overtook Tether in monthly transaction volume for the first time, and has continued to grow ever since.

Of course, Tether still holds a commanding lead in terms of market capitalization. Tether's market cap is over $110 billion, representing over 68% of the total stablecoin market share, while USDC has a market cap of $33.5 billion.

However, USDC's growth in transaction volume is a significant development. It suggests that USDC is becoming increasingly popular among investors and businesses.

In terms of total users, Tether still has the upper hand. As of April 2024, Tether is used by over 34.2 million unique wallets, while USDC has only 9.57 million unique users.

However, given USDC's rapid growth rate, it is likely that this gap will narrow in the future.

In addition to USDT and USDC, other stablecoins such as Paxos Dollar (USDP) and PayPal USD are also growing rapidly. The stablecoin market is expected to become even more competitive in the future.

Factors driving the growth of the stablecoin market:

• Low transaction fees: Stablecoins can be transferred at much lower fees than traditional methods.
• Stable supply: Stablecoins are typically backed by fiat currencies or other assets, which makes them less volatile.
• Versatility: Stablecoins can be used as a medium of exchange for other cryptocurrencies, and are expected to have a wider range of real-world applications in the future.

Future Outlook:

The stablecoin market is expected to continue to grow rapidly in the future. The combination of low fees, stable supply, and versatility makes stablecoins well-positioned to become an alternative to traditional financial systems.