According to Glassnode data, USDC may be overtaking USDT as the crypto market’s preferred stablecoin.
The supply of USDC has recently increased, while the supply of USDT has decreased. According to the most recent weekly report from Glassnode, USDT has seen a large number of redemptions recently, reducing its supply.
The “circulating supply,” which is a measure of the number of coins currently in circulation, is the relevant indicator here.
As shown in the graph above, the total USDT supply was at an all-time high of around $83 billion(R1.3TN) earlier in the month.
However, in the last week, the indicator has dropped precipitously as approximately $7.5 billion(R119B) has been redeemed from the coin. Tether’s total supply is now $75.7 billion(R1.2B).
This decrease in USDT supply occurred following the collapse of Terra USD, as investors may have begun to withdraw from the stablecoin in fear of a similar event occurring with Tether. The coin’s peg came under pressure as supply began to fall sharply, and its price dropped as low as $0.95(R15.06) on May 12th.
However, it didn’t take long for the coin to return to near-USD levels. This is how the supply of USDC changed while this was going on:
The chart below depicts the trend in Tether USD supply over the last few months:
The supply of USD Coin has been declining since February of this year, but in the last week, the indicator has flipped the trend and is now sharply rising.
The total supply of the coin is now around $51 billion(R809B), a $2.6 billion(R41B) increase over the period.
The supply trends of the two coins may indicate that investors are increasingly preferring USD Coin over Tether USD during times of fear, such as the current market.
Bitcoin’s price is currently hovering around $29.5k(R468K), up 4% in the last seven days. The cryptocurrency has lost 27 % in the last month. The chart below depicts the coin’s price trend over the last five days.