- Tether, the largest stablecoin by market capitalization, struggles with growth in on-chain volume, as USDC and Binance’s BUSD take off.
- The changes in the stablecoin landscape reveal that Tether has emerged as a favorite for retail transactions while USDC is the top pick for institutions.
- Binance’s BUSD grows alongside the cryptocurrency exchange platform and positions itself as the most compliant and safest stablecoin.
Stablecoins have seen a shift in their activity level and general sentiment has fallen alongside prices, despite a spike in demand and utilization. Tether (USDT), the largest stablecoin by market capitalization witnessed a decline in its on-chain volume in 2022 whilst USDC and Binance’s BUSD took over with a spurt in their trade volume.
USDC on-chain volume in 2022 was nearly four times that of USDT, signaling a shift in popularity of stablecoins among traders.
Also read: Solana could destroy Ethereum alternatives with its massive surge in activity on the SOL blockchain
USDC and BUSD are steadily taking over as compliant popular stablecoins, replacing Tether
USDC and BUSD have witnessed a steady growth in their on-chain volume and market capitalization throughout 2022, based on data from crypto aggregator Nansen.
Stablecoin statistics from Nansen
As seen in the chart above, USDT is the largest stablecoin by the overall market capitalization, USDC is second, BUSD the third and DAI is a distant fourth. A look at ERC-20 market capitalizations paints a different picture, USDT was dominant until mid January 2022, where general trust in Tether dropped due to a barrage of continuous FUD and suspicion about their operations.
USDC has witnessed higher adoption among institutions ever since. Over half of the USDT supply is on Tron, with the large bulk of the remaining supply on the Ethereum blockchain.
Binance’s stablecoin grew 1,409%, emerging as the safest stablecoin
In the two-year time period between 2020 and 2022, BUSD and USDC both experienced massive growth. The two stablecoins grew approximately 1,409% and 912% respectively.
Stablecoins: daily transactions and on-chain volume
As seen in the charts above, data from Nansen reveals a steady increase in on-chain volume and daily transactions in Tether’s competitors BUSD and USDC. BUSD grew alongside the world’s largest crypto exchange Binance and positioned itself as the most compliant and safest fiat-backed stablecoin in the market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.