The overall Blockchain space’s overall growth continues to be dependent on the success being recorded by the digital assets under its terrain. Bitcoin continues to be the most valuable and leading digital asset in the space, as many other altcoins pull the weight in the space. The Blockchain space has also witnessed the uprising of variant forms of tokens and digital assets like Stablecoins, mainly backed by the U.S dollar. However, the CEO of Circle- Jeremy Allaire, believes that the progress of USDC has now surpassed that of its rival stablecoin, Tether (USDT).
Allaire believes USD-backed tokens have surpassed Paypal
In his viral tweet yesterday, the Circle Co-founder believes that the trading volume of USDC in the last year, which had surpassed the $500 billion mark, puts the digital assets in a rivalry between itself and its rival USDT. The Executive compared that massive amount with the trading volume of payment giants- Paypal, sighting that Paypal’s gross annual trading volume from 2020 was barely half of the amount.
However, a few analysts have argued that Allaire’s stance, as they believe it’s a no-brainer to compare such figures between Paypal and USDC. The nature of USDC, as a cryptocurrency used to trade on exchanges and several DeFI platforms, means that the digital asset is supposed to boast huge figures compared to the payment trading volumes of a company like Paypal.
However, Allaire’s argument only stresses that USDC has become so important that its existence is now so beneficial, within and outside the crypto space. According to Allaire, the investor believes that, despite USDT boasting huge figures ahead of USDC, USDC is beginning to find its ground. However, the Circle CEO’s words cannot be entirely ascertained, as data from crypto data analytics- Messari, suggests otherwise.
USDT versus USDC
According to Messari, Tether continues to be the leading force between both stablecoins. The trading volume of USDT, at the end of 2020, was more than $750 billion. Alternatively, USDC, which had witnessed an upturn in fortune, only boasts about 53% of those figures. It is worthy to note that, despite closing the year on a solid note, both stable coins started to witness an upturn in fortunes in the latter part of 2020.
Earlier in the year, trading volumes of USDT were unmatched by that of USDC, as the Tether-backed digital asset was on fire. However, at the time of writing, the last 24hours trading volume of $1.5 billion for USDC is way above that of USDT at $204.1 million, another figure that backs up Allaire’s claims.
This upturn in fortune had now seen USDT burst into the top five cryptocurrencies in the world, ahead of Litecoin, Cardano, and Chainlink. Unfortunately, USDC, despite its progress, is out of the top ten most valuable cryptocurrencies, as its market cap of $10.7 billion places the digital asset as the 14th largest digital asset in the space.