Crypto Whales Ditched Tether for USDC After Stablecoin Panic

Coin Insider is the authority on bitcoin, ethereum, ICO and blockchain news; providing breaking newsletters, incisive opinions, market analysis, and regulatory updates. The platform, where you can convert USDC to USDT is founded in 2013 and based in London, Kyiv, Istanbul, and Moscow. It is well known as Eastern European Exchange #1 as long as one of the world’s largest global exchanges in volume and liquidity. You take full responsibility and risk of loss as a result of your use of the Services.

Before swapping coins, feel free to use our USD Coin to Tether calculator to see how many USDT you’ll receive. Simply enter the required amount in USDC, and let our USDC to USDT converter determine the approximate exchange rate. The Service Agreement and this Agreement as a whole shall constitute the entire agreement between the margin trading services of the Platform and the User (hereinafter referred to as “the parties”). The User (“you”) must comply with the Service Agreement and this Agreement and respective announcement from the Platform in using the AscendEX platform and the services provided by it (“the Services”). Whether you want to deposit your stablecoins in lending protocols or deploy them in liquidity pools to yield farm tokens, all the most powerful yield-generating options are only a few clicks away with Trust Wallet. tradeallcrypto USD is tradeallcrypto’s very own dollar-backed stablecoin that was launched to provide a tradeallcrypto-native alternative to other leading stablecoins. BUSD can be utilized in a wide range of DeFi protocols and is a go-to base currency on decentralized trading pools on BSC. The two largest stablecoins — Tether and Coinbase’s USDC — account for most of the market by total supply.

The Rise and Rise of Stablecoins

Say, for instance, you sign a smart contract that depends on the outcome of a sporting event. If this contract uses ETH for payment, your final take-home amount may vary depending on the cryptocurrency’s current valuation. A USDC-based contract, on the other hand, would naturally not fluctuate in value since the token always trades at $1. This would leave no ambiguity as to how much value you receive on the day of the contract’s execution.

In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics. Quickly exchange cryptocurrency at the best rate and the lowest fees with our mobile app or web platform. Please note that technical indicators don’t provide a full representation of what’s happening in the cryptocurrency market. Before making the decision to buy or sell any cryptocurrency, you should carefully consider both technical and fundamental factors, as well as your financial situation. The cryptocurrency market is also highly volatile, which means it may not be suitable for investors with a low risk tolerance. Normally, users receive their coins in a short range of 5-30 minutes. But there may be rare exceptions when transactions take a little longer. For instance, the blockchain can experience overload due to a rush of orders, or the trading partner can endure technical issues.

Purchase crypto from your USD Coin wallet

BUSD supply has been stable for the past four months, with no further minting or burning of the token. USDC has a market share of 36%, with 56 billion coins in circulation. Furthermore, it has not had the same supply cuts as its rival and is hovering around all-time high circulation levels. Read more about beam coin price here. This is why many have switched to USDC, which is fully backed and regulated. Tether remains the leading stablecoin in terms of market share, which is 43%.

At the end of the investigation, we may, at our sole discretion, decide to close your Account for which we are not required to provide you with any reasons for the same. The total market value of stablecoins rose steadily as new entrants joined the fray. But it wasn’t until early 2020 that stablecoins moved into the limelight in the cryptoasset markets. Whether you use USDT or USDC, you’re going to save yourself time and fees by creating or accepting payments with either of these stablecoins. Total stablecoin supply has ballooned nearly 4x from $29 billion to start 2021 to over $110 billion in July 2021. By February 2022, the total supply was 1.5 times more at $180 billion. Unlike the most popular stablecoin Tether , creators of the USD Coin are obligated to provide full transparency and work with a range of financial institutions to maintain full reserves of the equivalent fiat currency. Bringing US dollars on the blockchain allows moving them anywhere in the world within minutes, and brings much-needed stability to cryptocurrencies. Also, it opens up new opportunities for trading, lending, risk-hedging and more.

Is USDT Unsafe Since It’s not 100% Backed by USD?

DeFi offers similar services to what you can get with a bank account. One such option is to earn interest by lending your tokens on a variety of platforms. By including stablecoins in your investment portfolio, you can benefit from higher APY on less risky digital assets. While some exchanges offer wallets to hold USD in between trades, these are state/country-specific. If a trader’s region is unavailable, a sell order to cash out USD to a US bank account can take up to five business days, while cashing out to an EU bank account with SEPA transfer still takes https://www.beaxy.com/exchange/btc-usd/ a minimum of 1 working day. On top of the waiting time, there are also transaction fees for fiat withdrawal and deposits. Upon its release, hundreds of cryptocurrency trading pairs began listing against USDT, giving the coin a first-mover advantage in the stablecoin market. Today, there are 74.7 billion USDT tokens circulating on most major blockchains, including Bitcoin, Ethereum, EOS, Algorand, Tron, and more. USDT is the crypto market’s most popular trading pair, and can be used on exchanges to buy or swap for hundreds of other cryptocurrencies.

In general, all the projects within the same category work in a similar fashion and have only minor differences. The more outstanding ones are Tether , known for refusing to conduct a genuinely transparent audit, and Digix Gold , whose value is pegged to gold. Purchase items in various crypto dApps, exchanges, and blockchain-based games. 2) The issuer sends a request to the USDC smart contract to exchange the tokens for USD and take an equivalent amount of tokens out of the circulation.

It doesn’t have limits like your usual crypto OTC would have, it’s just that the interface has no charts. Just for posterity, Bitforex also lists the spot market for USDC/USDT as Phemex and would be your alternative if for some reason you don’t want to use Phemex. You will pay a withdrawal fee if you’re not KYC’d, plus there is a minimum withdrawal of 50 USD worth. Select USDC and choose from the different blockchains available. The supported blockchains are Ethereum, Tron, Solana, Polygon, tradeallcrypto Chain and Arbitrum One for USDT and USDC, and also Fantom for USDT. People will flee from one stablecoin to another and after a few weeks the storm blows over.

It’s unlikely Tether actually goes bust or declines significantly — at least in the short-term. In terms of technology they’re essentially exactly the same — they’re centralized tokens developed on the decentralized Ethereum blockchain. Nobody is going to reach into your Ethereum Wallet, or into the Exchange wallet and take USDT easier than USDC or vise versa. USDT is slightly more widely available than USDC, however most large exchanges, and all DeFi exchanges have trading pairs with USDC now as well. Tether has trimmed around $3 billion over the past seven days as its supply continues to shrink. This leads to a dwindling market share as the same isn’t happening with Circle’s USD Coin.

Circle guarantees that every USDC token is backed with a single US dollar. The process of turning US dollars into USDC tokens is called tokenization. Using a stablecoin to purchase other cryptocurrencies is a sale of the stablecoin that must be reported, even if the capital gain is $0. Converting other cryptocurrencies into stablecoin and vice-versa is also a taxable event.

“In the current market condition, a lot of people view USDC as the safer, preferred stablecoin,” Edward Moya, trading platform Oanda’s senior market analyst, told CoinDesk. Users hold and own their private keys, and their wallet security remains anonymous. Atomic has no access to your wallet, neither do we monitor your operations. Once you click the Exchange icon, ChangeNOW manages all other activities. So far, there have been no complaints about the operations and security of the ChangeNow exchange. Atomic is in a long-term partnership with the exchange provider. Make sure the wallet in question supports selected cryptocurrency. Under the “You Send” section, choose bitcoin and enter the amount you’d like to exchange. Next, select ethereum in the “You Get” section and click the Exchange button. The coin is governed by the Centre Consortium, which oversees the technical and financial standards for the stablecoin and ensures that there is transparency around a true 1-to-1 backing.

• Then, when the markets recovered, stablecoins received a boost from the booming DeFi market, driven—in part—by the yield-farming craze.
• The USD wallet in your FTX portfolio in Exodus will display any US dollars that you hold in your FTX account in the FTX Exchange app.
• It is also despite the massive hole left by the collapse of Terra’s UST stablecoin, once the third-largest.
• Transacting in digital assets could result in significant losses and may not be suitable for some consumers.
• If you really disagree, you can even short USDT, by borrowing USDT on Compound at 4.2%.