Tether and USDC data refer to the third quarter of 2020
The main stablecoins, Tether (USDT) and USD Coin (USDC) recorded significant increases in trading volume on centralized exchanges, revealed a third quarter report on the Crypto Rank Platform. The report data indicates that the USDT’s trading volume on centralized exchanges increased 43%, from $ 440 billion to $ 628 billion, while the USDC’s volume increased 46%, from $ 6.76 billion to $ 9.87 billion.
Turnover for both stablecoins fell in the second quarter. For the USDT, the volume decreased from $ 518 billion to $ 440 billion, representing a 15% decline. The USDC fell from $ 7.01 billion to $ 6.76 billion, representing a decline of 3.5%.
The popularity of stablecoins has grown over the years. The stablecoin market continues to prosper, despite the DeFi boom, which has become dominant. According to Coin Metrics, the growing demand for stablecoins, in general, is due to investors looking for a safe haven, as the cryptocurrency market remains volatile. Stablecoins are pegged to fiat currencies that are not very volatile, so their values do not change very quickly, which makes them more reliable for buying and selling.
Tether’s monthly trading volume in August exceeded that of Bitcoin by 49%. This growing demand and the increase in turnover led stablecoin to become the third largest cryptocurrency in market capitalization, after having replaced the Ripple XRP. It currently has the highest 24-hour trading volume among major cryptocurrencies, with over $ 55 billion.
The USDC, the second largest stablecoin, doubled its market capitalization in September, as the volume of transactions on the network continues to grow. The market capitalization is currently almost $ 3 billion a month after crossing the $ 2 billion level and is currently the 12th largest cryptocurrency.
The ZyCrypto recently reported that USDC will be launched on the blockchain Stellar in the first quarter of 2021. This could lead to increased demand for stablecoin and further expand trading volume, even beyond the current rate. The USDT started to lose its dominance in the stablecoin market recently, which means that the USDC can gain a strong position if the positive trajectory strengthens.