USDT vs USDC compare

What is a stablecoin?

A stablecoin is a crypto with its value pegged to a particular fiat currency (i.e. regular currency like the dollar or euro) or a tangible asset (i.e. gold, real estate or securities). Stablecoins are created to combine the stability of fiat currencies with the convenience of cryptocurrencies. 

By design, a stablecoin can be bought or sold at a fixed price at any time. When a coin is exchanged for fiat money, a stablecoin, as a rule, is “burned” and goes out of circulation. At the same time, the coin has all the qualities of a crypto, but, unlike bitcoin or ether, it is not subject to volatility. If the stablecoin is backed by the US dollar, the price of one coin should be as close as possible to one US dollar, if it is backed by the euro currency, the price should be around one euro, and so on.

What is USDT?

USDT, also known as Tether, is the third largest cryptocurrency by market capitalization and the most popular stablecoin. Due to the fact that its exchange rate is pegged to the US dollar, 1 USDT equals 1 dollar or so. Tether's all-time high is $1.22 and all-time low is $0.5683, but those were short-lived ups. The backing of the USDT stablecoin is not so much US dollars as stocks, bonds and other securities that are among the reserves of Tether Limited.

How can I use USDT?

USDT is the world's most liquid cryptocurrency and the highest margin stablecoin, making it ideal for trading. This is very convenient, since the currency is available on almost all exchanges and pairs with many other digital currencies for trading.

Second, USDT can be used as a medium of exchange. More and more companies are using stablecoins to quickly and easily pay for freelancers who are located anywhere in the world.

Thirdly, some simply convert their funds into stablecoins and keep them in their portfolio as savings or hold to earn a yield on them.

Advantages of USDT

• Availability

Since Tether is the most popular and sought-after stablecoin, it is available on almost any exchange and also pairs with many other cryptocurrencies to trade.

• Stable value

Each token in circulation is fully backed by the company's reserves and its peg to the US dollar makes it less volatile.

• Transactions are either free or very cheap

Users do not pay any fees when sending coins between USDT accounts. A small fee is charged for converting USDT to other crypto or fiat currencies.

What is USDC?

USD Coin (USDC) is another token with its price pegged to the value of the US dollar. It was built by the Center consortium, which is composed of Coinbase and Circle. The issuer Circle is responsible for backing USD Coin with the necessary reserves. The funds required to back the USDC price are kept on the ledgers of the major US banks and are regularly audited by an independent auditor.

USDC is the main rival of the Tether coin, but in contrast to it, the emphasis is on enhanced security, transparency of operations and lower volatility.

How can I use USDC?

The most common use of a stablecoin is to instantly send and receive USDC to anyone in the world. 

Since USDC is an ERC-20 based token, it can be employed by decentralized apps (dApp) built on the same blockchain. This is why USDC is in demand in the DeFi community.

USDC recently cooperated with the Venezuelan government-in-exile to help people, in particular health care workers, in a country with an unstable economic situation.

Advantages of USDT

• Extensive experience of the team

Circle and Coinbase are massive and regulated finance companies that operate in accordance with high standards of business and comply with the law.

• Transparent reserve reporting system

A financial report on current USDC backing reserves is published every month.

• US Regulatory Compliance

The company operates in accordance with current regulations and even cooperates with the government.

What's the difference between USDT and USDC

Both stablecoins are similar, but they also have quite a few differences. A comparison in the style of Tether vs USDC will help you decide which coin to diversify your portfolio.

Growth

Tether lost a huge chunk of its volume when TerraUSD was depegged. Investors began to sell their USDT as they feared that the company, which is not entirely open with the public about its reserves, might also collapse. As a result, from a market capitalization of over $83 billion, it has dropped to around $66 billion.

USD Coin, on the contrary, began to gain in volumes, mainly because USDT investors exchanged their assets for USDC. From a market capitalization of $48.5 billion that USD Coin had at the beginning of May 2022, it has grown to almost $56 billion in a few months.

Since August 2022, Tether's market capitalization has been on a growth course and now stands at over $71 billion. The market capitalization of USD Coin, on the contrary, began to decline and is now over $43 billion.

Blockchains

Another major difference is the blockchains on which stablecoins are available. Both USDT and USDC use the Ethereum platform. In addition, to increase utility and convenience, projects use various other blockchains.

Tether: Bitcoin USDT, EOS, Tron, Algorand, SLP, OMG

USD Coin: Algorand and Solana

Stability

Both coins are pegged to the US dollar and are trying to keep the price at a corresponding level. The rate may show slight fluctuations, but it always returns to the original value. But when it comes to backing their assets, USD Coin is more trustworthy and seems like a more reliable project. Unlike Tether, which are controversial about their reserves, USD Coin has a transparent reserve reporting system.

Supply and Volume

Volume speaks about the total amount of all trades made involving stablecoins, while supply refers to the number of coins available for trading. 

In terms of trading volume, USDT is far ahead of all crypto assets. Over the past 24 hours, Tether tokens have traded 100297039769.000000000000 in volume, compared to about $38 billion worth of bitcoin trading. USDC trading volume is only 383197619.363563060000.

The total supply of Tether coins in circulation is 0 USDT, while the total supply of USD Coins is 0 USDC.

The 24-hour percentage change of USDT is 0.

The 7-day percentage change of USDT is [Percent_change_7d_1].

The 24-hour percentage change of USDC is 0.

The 7-day percentage change of USDC is [Percent_change_7d_2].

To compare these and other crypto indicators, use the real-time USDT and USDC price chart and USDT vs USDC calculator.

The Future of Stablecoins USDT and USDC

No one can accurately predict the future of even more or less stable coins like USDT and USDC. The failure of such a big player in the stablecoin market as TerraUSD, which caused a tsunami of consequences affecting users around the globe, proves this once again.

The popularity of these coins is growing every day, which is of great interest to government authorities. And if USDC, which is trying to play safe and comply with regulations, probably will not have problems, then with Tether dodging audits, apparently, everything is not so simple.

USDT vs USDC: Which Stablecoin Should You Choose?

The decision to invest in Tether or USDC is yours to make. If you value transparency and are not looking for large volumes and liquidity, USDC will be the best option. If you want to invest in the stablecoin market leader, pick USDT.

Whichever coin you choose, USDT or USDC, please note that even investing in more or less stable digital currencies, you risk losing your money. Especially when there are doubts about stablecoin collateral reserves.

A quick review to a USDT vs USDC price chart

Both Tether USD vs USD Coin labor under from the equal fluctuations that all fundamental crypto markets do, it’s true that at the same time they can perform better than the elder cryptos, but they yet are entangled and behave as other major crypto trading platforms. So the  USDT  vs USDC feud cannot be determinated just by looking at trading/price schedule.

Tether USD vs USD Coin: conclusion

Despite the risks associated with the obscure USDT collateral situation, Tether still occupies a leading position among all stablecoins. And in terms of trading volumes, it is even ahead of such whales as bitcoin and ether.

On the other hand, USD Coin which is among the top 5 cryptocurrencies is also showing good market performance.