Key Insights:
- Stablecoin news reveals that USDC is shaking up the stablecoin lead that USDT has over the market.
- USDT remains dominant by market cap, but USDC secures leadership in adjusted stablecoin volumes.
- RGB protocol rollout brings USDT back to Bitcoin.
Recent stablecoin news revealed that stablecoin growth was not yet at levels that indicate market recovery. However, there were some interesting observations that paint a clearer picture of how things have been unfolding in the stablecoin segment.
Stablecoins have long acknowledged that the Tether USDT stablecoin held a solid lead in the market. This is especially the case when it comes to market cap, or the amount in circulation.
However, a clearer, and perhaps even more meaningful, stablecoin metric would be transaction volume. This offers a glimpse at which particular stablecoin has been enjoying more adoption, and the Circle USDC stablecoin appears to be pulling ahead.
According to the latest stablecoin news courtesy of Visa analytics, USDC achieved $1.21 trillion in adjusted stablecoin volume in June. This was roughly 67% of the record 1.79 trillion in total stablecoin volumes during the month.
Stablecoin News: USDT Remains Dominant by Supply Despite USDC’s Higher Volumes
A 67% volume dominance means USDC has been securing more utility than the Tether USDT stablecoin. An interesting outcome considering that the latter has a larger supply.
The USDC dominance in the trading volumes category reflects a major finding. It has been leading largely due to its higher regulatory compliance, which makes it more attractive, especially to institutional players.
USDT had a significantly lower share of the stablecoin volume at $576 billion. This was equivalent to just 32% of the total stablecoin volume.
Despite this observation, USDT still held a solid lead in terms of market cap. According to DeFiLlama, the Tether USDT stablecoin held on to a 59% market cap dominance, with a $184 billion market cap at the time of observation.
Meanwhile, USDC had a $73 billion market cap, which was just over 23% of the total stablecoin supply. Less than half the circulating supply of USDT.
Ideally, the stablecoin with the larger circulating supply should have a bigger share of the volumes. The difference in outcome paints a clearer picture of what has been happening in the market.
The implementation of stablecoin laws has been causing a shift in the market. Institutional players have a tighter grip on stablecoin activity, and this is reflected in the stablecoin with the dominant volume.
USDT Scores a Win with the Bitcoin Blockchain
Although USDT might be losing on the trading volume front, it just celebrated a major win. Tether is reportedly planning to make USDT available on Bitcoin through the RGB protocol update.
It is worth noting that this is not the first time. USDT was originally launched on the Bitcoin blockchain through Omni in 2014. However, Tether removed it in 2023, reportedly due to low usage.
The launch is slated for this month and is expected to bring benefits. For example, it will enable the Bitcoin blockchain to serve as a stablecoin settlement layer.
The USDT transactions on the native Bitcoin network may also unlock lower fees and eliminate the need for intermediary tokens. But will this be enough for USDT to regain its dominant position in terms of volumes?
Only time will tell whether USDT will benefit and take the number one stablecoin spot by volume. Meanwhile, the stablecoin market cap recently fell to a 4-month low. This reflects declining retail activity, which can flip during periods of excitement, often characterized by higher retail volume.
