Stablecoin USD Coin (USDC) has grown in popularity since the collapse of FTX. It now frequently reaches day-to-day transfer volumes 4 to 5 times that recorded by significant competitor Tether (USDT) according to information from blockchain analytics firm Glassnode.

That’s regardless of the market cap of USDT being $23 billion higher than USDC. As of Jan. 10, the difference was in USDC’s favor by a margin of 4 and a half times.Both stablecoins taped surges in transfer volumes following an infamous tweet from Binance CEO Changpeng Zhao on Nov. 6 revealing Binance would liquidate its entire FTX Token(FTT)holdings. FTX went into personal bankruptcy quickly after.Since then,USDC has actually been the preferred option for crypto users, balancing over$

12.5 billion more in transfer volume daily than USDT, according to Glassnode information. Total transfer volumes for USDC (In blue)and USDT(In green )from

USDC transfer volume hit 5X USDT’s in fallout from FTX collapse
Oct. 8, 2022, to Jan. 10, 2023. Source: Glassnode.While each stablecoin is created to trade as near one U.S. dollar as possible and

is backed by reserves held by its companies, USDC is regarded by some in the crypto community as a potentially safer option.Supporters point to USDC’s assets, which are backed by cash or short-term United States treasuries and its monthly audits by worldwide accounting firm Grant Thornton.Tether has dealt with criticism over numerous years for not supplying a correct audit and being less transparent about its reserves.

USDC transfer volume hit 5X USDT’s in fallout from FTX collapse
Cast your vote now!The business behind USDT was fined$41 million in October 2021 by the Commodity Futures Trading Commission, which accused it of just holding sufficient reserves 27.6% of the time between 2016 and 2018 in spite of declaring its tokens were totally backed by fiat currencies.Tether has actually been decreasing the business paper backing its provided tokens in favor of safer

alternatives, with the newest asset breakdown on Nov. 10 shows that almost$46 billion of its reserves consist of cash, bank deposits and U.S. treasuries.Related: Crypto.com delists USDT for Canadian users following OSC ban USDT quickly lost its peg to the U.S. dollar following the FTX collapse amidst fears of direct exposure to Alameda Research and FTX, which Tether rejected. On-chain evidence suggests the two companies were trying to

short the stablecoin. USDT had actually been recording transfer volumes much higher than USDCs up until May 2021, after Tether had increased the supply of the token from$8.79 billion to$61.82 billion in the previous year, representing an increase of 603%. Market cap of USDT from May 2018 to January 2022. Source: TradingView In spite of the subsequent

modification

in consumer choices, Tether had actually referred to the growth in market capitalization as an indication of “the marketplace ‘s ongoing trust and confidence in Tether.”It kept in mind every token could be redeemed for U.S. dollars on a 1:1 basis.

USDC transfer volume hit 5X USDT’s in fallout from FTX collapse