USDC and USDT can be described as Cryptos that are pegged or backed with the same amount of fiat currency USD (U.S. dollar). Stablecoins are also known as USDC and USDT. Stablecoins can be used to reduce volatility in cryptos. They reduce fluctuations and maintain a steady value. You can also back stablecoins with assets other than cash like gold.
USD stablecoins are a stable currency that traders can use to trade in volatile crypto markets. USD stablecoins can be used as a store-of-value. USD-backed stablecoins have become the norm. This is similar to how 90% of forex trading involves USD, which is the reserve currency in the world.
Stablecoins are very popular today. Stablecoin demand has increased since 2021. The market cap for all stablecoins was $151 billion in January 2022. We will be discussing the two most popular stablecoins, USDT & USDC in this article.
Snapshot of USDT vs USDC
USDTUSDCIssuing organizationTetherCircle and CoinbaseMarket Capitalization$ 67 billion$ 50 billionLaunched year20142018Value per coin$ 1 USD$ 1 USDAuditing agencySporkin, Sullivan LLP, FreehGrant Thornton
What is USDC?
In 2018, USDC was created by Coinbase and Circle. Like any other USD-backed token, its price is fixed at $1. The Centre Consortium oversees the technical and financial standards. Centre Consortium ensures transparency and 1-to-1 backing. The USDC is equal to $1. Dollars and other cash options.
If approved by financial institutions that meet the Circle membership criteria, a USDC can be issued. This allows for the expansion of the USDC ecosystem. USDC can be purchased on major crypto exchanges and providers. Any ERC-20-compliant exchange or wallet can send and receive the USD Coin. It can also be supported by many other blockchains such as Binance Smart Chain and Solana.
USDC Volume
USDC is currently ranked 4th in market capital with a circulating stock of $52 billion. It is now only one spot behind USDT in market cap, having steadily increased it. Its 24-hour trading volume was $17.8 million at the time of writing.
USDC Stability
The USD coin remains stable at $1. Although there will be minor fluctuations in the value, they are quickly corrected to bring the coin close to $1.
What is USDT?
Tether Limited, a Hong Kong-based company that first issued USDT in 2014, was founded by Tether Limited. It was created to bridge the gap between Crypto and fiat currencies. It was the first company to offer its customers a platform to trade US-backed Cryptos. It offers many technical advantages over Bitcoin and Ethereum, including high liquidity but no volatility.
Tether harnessed the best of both worlds and created a simple way for anyone to send crypto dollars with transparency, speed, cost, and ease. It allowed for the use of crypto in payments and remittances. Several Crypto trading pairs began listing against USDT shortly after its release. This gave USDT an advantage in the stablecoin marketplace. The USDT tokens can be found on all major blockchains including Ethereum, Bitcoin and Algorand.
USDT Volume
USDT is currently ranked 3rd in crypto market capital. It currently has $67.5 billion in circulating supply. Its 24-hour trading volume was $50.5 million at the time of writing.
USDT Stability
USDT’s dollar value is usually around $1. This is intentional. Although there are occasional ups and downs in the market, it quickly recovers to $1.
Source: Tether.io
USDC vs USDT
The Blockchain Behind USDC and USDT
Different blockchains offer different benefits to users. These benefits could range from transaction speed to utility. Solana and Ethereum are the blockchains that circulate USDC. Algorand is Ethereum, Algorand and OMG, SLP Tron are the blockchains that circulate USDT.
Continue reading: Advantages and Disadvantages of Different Types of Blockchain
USD Savings Inspection
These stablecoins can be audited by highly regarded accounting firms if you have questions such as “Is USDT safe?” or “Is USDC safe?”
Grant Thornton examines USDC accounts. It is one the five most prestigious accounting audit firms in the world. Every month, USDC’s savings accounts are reviewed and posted on the Circle website.
USDT accounts are inspected by Sporkin, Freeh, and Sullivan LLP. USDT accounts raise concerns for investors because they don’t know how often these accounts will be audited.
USDC founders vs. USDT
Coinbase and Circle created USDC in 2018, while Tether Limited created USDT in 2014.
USDT vs USDC
These stablecoins can be traded on crypto exchanges in the same way as any other coin. These stablecoins have a transaction fee that varies from one exchange to the next.
USDC and USDT can be used
USDC and USDT stablecoins can be used for many purposes such as accessing yield on the blockchain market, storing values, and making payments. Here are some examples of potential uses for stablecoins.
Defi to Lender
Defi is a decentralized financial system that operates without a central administrator or third party. It uses blockchain-based financial apps and operates on a peer to peer model. With Defi lending, you can lend your stablecoins and earn interest. Lenders and borrowers both benefit from this system, which allows them to get lower-interest loans than the central exchange. Stablecoins are also a good option for lenders, as they can earn long-term interest.
Crypto Pairs
By trading crypto pairs, users can trade one cryptocurrency asset for another via an exchange. These pairs allow users to compare the prices of different crypto assets. In a BTC/USDT pair, you can find out how much USDT is equivalent to one BTC (Bitcoin).
Liquidity
With AMMDEX, users can offer liquidity to their stablecoins using automated market maker decentralized Exchange (AMMDEX). Users can use their USDC to provide liquidity on top pairs such as ETH and USDC. They may also be eligible for trading fees or other incentives.
Earn interest
By lending your stablecoins, you can earn interest on usdc or usdt for a set period. Check to see if your Crypto Exchange offers lending services.
Conclusion Thoughts
If you’re wondering if it is better to use USDT or USDC, then read on. It is interesting to note that most experts don’t consider USDT the best stablecoin, despite it having a larger market cap and volume. This is due to the lack of transparency and auditing in USDT.
USDC is more transparent than USDT. In terms of blockchain and exchange rate, USDC is similar to USDT. USDC is preferable for people who value transparency, while USDT is preferred to invest in Crypto and liquidity.
USDC and USDT can be good options for investors looking to join the stablecoin marketplace. They make up the bulk of stablecoin market capital along with BUSD (Binance USD). Because Visa has partnered up with Circle, vendors are more comfortable using stablecoins. These Cryptos are promising. It is time to get on board the stablecoin train.
ZebPay now allows you to buy USDT or USDC.
There is a difference between USDT and USDC ZebPay.
