Jakarta, Pintu News – Stablecoins like USD Coin and Tether are designed to maintain a stable value of $1, yet they have significant differences in terms of transparency, regulatory compliance, and market metrics.
This article will dig deeper into the differences between USDC and USDT to help investors understand the best choice for their portfolio.
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USD Coin, created by the Centre’s consortium involving Coinbase and Circle, offers high transparency with backing from cash assets and short-term Treasury instruments. Each month, Circle provides a third-party guarantee that reinforces their full transparency and collateralization.
With a market capitalization of around $60.10 billion and a daily trading volume close to $11.25 billion, USDC shows consistent growth and wide acceptance on various blockchains such as Ethereum and Solana .
USDC maintains its peg to the dollar strictly, thanks to transparent reserve management and periodic audits. Although market volatility can affect prices momentarily, USDC generally stabilizes back near a dollar, making it a safe choice for investors who value clarity and regulatory compliance.
Also read: Bitcoin (BTC) Potentially Reaches $110,000, Whale Accumulation Increases!
As the most widely used stablecoin, Tether has the largest market capitalization in the industry, at approximately $143.99 billion. USDT’s daily trading volume often exceeds $60 billion, demonstrating the extremely high liquidity that is important to traders and institutions.
While USDT has managed to maintain its peg to the dollar for nearly a decade, there are ongoing questions regarding the composition and transparency of its reserves. Tether has made efforts to improve their reporting, but there is still a demand for more insight into reserve assets.
Despite this, USDT remains a popular quote currency on many exchanges, supporting major trading pairs such as Bitcoin /USDT and Ethereum (ETH)/USDT.
Read also: Tron (TRX) Outperforms Ethereum (ETH) in USDT Supply, What’s the Impact?
In choosing between USDC and USDT, investors need to consider the unique combination of liquidity and regulatory compliance that suits their needs. USDC offers higher security and transparency with regular audits and public disclosure of how reserves are held.
On the other hand, USDT offers unrivaled liquidity, making it ideal for large and frequent trading operations. Both of these stablecoins have demonstrated the ability to maintain their peg to the dollar very well, despite brief incidents of de-pegging occurring during highly volatile market events. The choice between USDC and USDT will depend on individual priorities in terms of transparency versus liquidity.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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