The significant volatility of the assets in the crypto market is well-known. With the introduction of stablecoins, which are tokens tethered to fiat currencies and have a fixed value, it has still continued to draw new users. Users of stablecoins can transact in the cryptocurrency market without having to worry about the price fluctuating frequently like it does with other digital currencies like Bitcoin and Ethereum.

Today's most widely used stablecoins on the crypto market are Tether USD (USDT) and USD coin (USDC). Both tokens have multiple comparable use cases and are backed by US dollars. There are significant variances between them, though.

This article compares USDT and USDC in an effort to aid you in deciding which token you should probably trade when you first enter the cryptocurrency market.



What Is A Stablecoin?

A cryptocurrency that has a fairly stable price is known as a stablecoin. Because they are anchored to a fiat currency like the US Dollar, stablecoins typically have this stable value. As a result, stablecoins can be used by investors and traders without worrying about price volatility.

Stablecoins come in different forms, but USDT and USDC are the most well-known ones because they are supported by the dollar.

Brief Stablecoin Overview: USDC vs USDT

USDC Origin

A stablecoin, USDC, often known as USD Coin, is backed by the US dollar at a 1:1 ratio. The Centre consortium is in charge of the USDC cryptocurrency, which was established by Coinbase and Circle in 2018.

USDC Stability

Since its creation, USDC has been largely steady and tied to the dollar. It may fluctuate somewhat, but it always returns to $1, making it dependable and stable.

USDC Volumes
With a market cap of little over $43 million as of this writing, USDC has been consistently trading among the top 5 cryptocurrencies. Many investors have switched to stablecoins as a result of the excessive market volatility and bullish market run.

USDT Origin
A stablecoin backed at a 1:1 ratio by the US dollar is called USDT, sometimes known as Tether or USD Tether. Tether Limited, based in Hong Kong, created the USDT coin in 2014.

USDT Stability
Given how long it has been around $1, USDT is among the stablecoins that has remained the most stable. It may fluctuate somewhat, but it always returns to $1, making it dependable and stable.

USDT Volumes

With a market valuation of slightly over $71 million as of this writing, USDT has been trading comfortably in the top three cryptocurrency rankings. Many investors have switched to stablecoins as a result of the excessive market volatility and bullish market run.

What is Similar Between USDT vs USDC

Following are three key comparisons between USDT and USDC:

1. Fiat-backed tokens

Both tokens have a 1:1 parity with the US dollar and are backed by money. They are therefore more stable than other cryptocurrencies, which do not have any physical assets to back up their value.
They are accepted on well-known cryptocurrency exchanges since they are backed by the US dollar. Because of this, trading or exchanging them for other cryptocurrencies is simple.

2. Transparency and reliability

Since USDT and USDC are centralized stablecoins, their issuers must be trusted. As a result, Circle provides monthly attestations for USDC on their transparency website based on the audits of Grant Thornton LLP, and Tether, the issuer of USDT, depends on the audits of BDO Italia and publishes reports on a quarterly basis on the stakes of its platform and reserves. These esteemed accounting companies are crucial in proving the legitimacy of the USDT and USDC.
3. Available on trusted blockchains

Basically, the Ethereum blockchain powers USDT and USDC. However, on other blockchain platforms like TRON, Solana, and Algorand, they are growing and receiving support.

Differences Between USDT vs USDC

Compared to USDC, which is relatively new, USDT has been available on the market for more than four years. It is irrelevant whether you use USDT or USDC for instant crypto exchange trading, but it is important to take into account the following distinctions if you intend to trade them over time or hold them as a store of wealth.

Price Stability

It is important to distinguish between stablecoin stability issues and other cryptocurrencies' volatility.

USDC has been more stable than USDT in terms of stability. The price of the USDT periodically dropped below $1.00 in 2019. Its cost increased by as much as $1,000 per USDT in the same year. On the other hand, since its launch in 2018, the price of USDC has held steady and maintained a 1:1 ratio with the USD.

Market capitalisation

Compared to USDC, which has a market cap circulating supply of $52 billion, USDT has a greater market capitalization with a circulating supply of $67.5 billion and trades in significant volumes every day. As a result, traders favor using USDT over USDC more often.