Cointime

Download App
iOS & Android

Understanding Transfer Volumes and Why USD₮ Remains on Top

Validated Media

Cointelegraph recently published an article titled “USDC's ERC-20 transfer volume hit 5X USD₮’s in fallout from FTX collapse”. They open the article by saying:

“Circle's Stablecoin USD Coin has grown in popularity on Ethereum since the collapse of FTX. USDC's ERC-20 variant now frequently reaches daily transfer volumes four to five times that recorded by major competitor Tether on the network according to data from blockchain analytics firm Glassnode. That’s despite the total market cap of USD₮ being $23 billion greater than USDC. As of Jan. 10, the difference was in USDC’s favor by a margin of four and a half times.

This is an extremely inaccurate report on the question of “Does either USD₮ or USDC have higher transfer volumes relative to their marketcap?” Cointelegraph could have just as easily reported the following story using the exact same logic:

“Tether’s Stablecoin USD₮ has grown in popularity on Tron. Tether’s USD₮ TRC-20 has reached a total 24 hour transfer count 891 times higher than that recorded by major competitor USDC.”

This statement would also be factually accurate, but both are a flawed way of looking at the situation!

Here are the facts:

1) Both USDC and USD₮ are issued on multiple blockchains 2) On some blockchains USD₮ is used more than USDC and on others USDC is used more than USD₮ 3) The only objective comparison is to add up these numbers across multiple blockchains

And if we did this, what would it show us?

On January 17th, the day this article was written USD₮ traded 10x more volume than USDC despite its marketcap being only roughly 50% larger.

Looking at this question from a different angle, we can compare the number of unique holders of each coin on their top three chains.

USD₮ has 16,640,097 unique holders on Tron

USD₮ has 3,993,999 unique holders on Ethereum

USD₮ has 449,981 unique holders on Solana

USDC has 1,215,427 unique holders on Polygon

USDC has 1,584,336 unique holders on Ethereum

USDC has 1,430,039 unique holders on Solana

Based on this it's apparent that USD₮ has more unique holders on Ethereum alone than USDC has across Polygon, Solana, and Ethereum, and USD₮ has 4x this number of holders on Tron!

Returning to the subject of transfer counts, even when we look solely at Ethereum during the timeframe Cointelegraph highlighted we see additional context they refrained from commenting on.

While it is true that the total number of USDC transfers during mid-January was higher than the total amount of USD₮, this doesn't capture the whole picture.

USD₮ had twice as many total transactions on Ethereum alone during this limited timeframe than USDC.

And

USD₮ had close to three times as many unique users/receivers as USDC on Ethereum alone during this timeframe.

So how did USDC transfer 5x more than USD₮ during a week in January despite have half as many total transactions and a third less total users transacting? Larger users made up a much larger percentage of that volume, meaning USDC is used less by normal people engaged in real economic transactions and more by large players transferring balances around. This directly contradicts USDC latest marketing materials which feature claims that USDC is being mainly used to support real-world economic transactions.

In fact, looking at January 17th the metric used by Coin Telegraph would show roughly $16bn in "transfer volume" for USDC. Digging a little deeper we see that Circle and the USDC contract burned and minted a material portion of this volume. Up to $2bn of this volume (12.5% of total) can be accounted for between burn and mint (and subsequent transfers to/from) transactions. While it's not possible to know exactly which tx are being excluded from Coin Telegraphs metric these activities by Circle could account for $2bn of the $16bn in "transfer volume".

Even accounting for all of this, the transfer volume also appears to be continually inflated by a relationship between Circle and Coinbase where large transfers are the norm.

This then begs the question of what % of this transfer volume is composed of exchanges interacting with their own wallets, with Circle subsidiaries, and funds and other investments using USDC as a dollar proxy versus actual real economy transactions which Circle is pivoting their narrative to?

In its marketing deck, Circle states the following: “This suggests that USDC may already support a significant amount of real-world economic transactions as well as financial inclusion goals.”

If that were the case, why does USD₮ continue to outrank USDC in terms of actual numbers of users, holders, unique transactions, overall volume and numbers of transactions?

Instead of desiring and aspiring to become a pure CBDC, Tether realizes that the future of USDt and XAUt are more and more directed towards supporting communities around the world that have been ignored and forgotten by the finance industry. Nothing else matters.

If this were truly the case, one must ask why you never see the following headlines and posts from businesses in Turkey, Lebanon, and other countries struggling with failing currencies for USDC?

Read more: https://tether.to/en/understanding-transfer-volumes-and-why-usdt-remains-on-top/

Comments

All Comments

Recommended for you

  • Traders Fully Anticipate 25 Basis Point Rate Hike by Fed by End of 2026

    On May 22, market pricing indicated that traders have fully anticipated a 25 basis point rate hike by the Federal Reserve by the end of 2026. In related news, Fed Governor Waller stated that the Federal Reserve should not signal any further rate cuts and should remain inactive in the short term.

  • Spot Gold and New York Futures Gold Both Fall Below $4500

    On May 22, spot gold and New York futures gold both fell below $4500 per ounce, declining by 0.94% during the day. Traders have fully priced in a 25 basis point interest rate hike by the Federal Reserve by the end of 2026.

  • BTC Falls Below $77,000

    Market data shows that BTC has fallen below $77,000, currently priced at $76,977.52, with a 24-hour decline of 0.18%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Fed Governor Waller: Inflation Risks Mean Fed Should Not Signal Further Rate Cuts

    On May 22, Federal Reserve Governor Waller stated on Friday that, given the increasing risks of inflation, the Fed should not consider further rate cuts as a default plan. Earlier this year in January, Waller had supported rate cuts. In his speech, he noted that the ongoing conflicts in the Middle East and rising costs of oil and other commodities are increasingly likely to trigger broader persistent inflation in the economy. He emphasized that it is time for the Fed to stop signaling that the next action is likely to be another rate cut. Waller indicated that maintaining interest rates in the current range of 3.5% to 3.75% is likely the correct approach for the foreseeable future. He added, 'If inflation does not subside quickly, I cannot rule out the possibility of future rate hikes.' Waller stated that he now agrees with the view that the Fed should clearly indicate that its next rate adjustment could be either a cut or a hike.

  • Tiger Brokers Fined 308.1 Million Yuan for Illegal Cross-Border Securities Activities in China

    On May 22, Up Fintech Holding Limited (formerly Tiger Brokers) announced that on May 22, 2026, some of its subsidiaries received a notice from the Beijing Regulatory Bureau of the China Securities Regulatory Commission (CSRC). The notice indicated that the CSRC's Beijing Regulatory Bureau had launched an investigation into the subsidiaries for suspected illegal activities related to securities, funds, and futures business. The investigation found that these subsidiaries engaged in unlicensed cross-border securities activities and illegal fund and futures-related activities in mainland China. Based on the investigation results, the CSRC's Beijing Regulatory Bureau imposed a total administrative penalty of approximately 308.1 million yuan and confiscated illegal gains totaling about 103.1 million yuan. Mr. Wu Tianhua, the company's director, CEO, and actual controller, also received a warning and was fined 1.25 million yuan. As of the end of 2025, retail customer assets in mainland China accounted for about 10% of the company's total customer assets in the consolidated financial statements.

  • Tiger Brokers States Hong Kong Entity Operates Independently, CSRC Notice Not Directly Applicable

    On May 22, in response to the China Securities Regulatory Commission's (CSRC) announcement regarding the rectification of illegal cross-border securities and futures fund operations and related penalties, Wang Shan, Chief Operating Officer of Tiger Brokers (Hong Kong) Global Limited, stated that the company is aware of the relevant notice issued by the CSRC. The company clarified that the notice does not directly apply to its Hong Kong entity, which operates independently and is regulated as a licensed corporation holding a license issued by the Hong Kong Securities and Futures Commission (SFC). (21st Century Business Herald)

  • U.S. Stocks Open: Major Indices Slightly Higher

    On May 22, U.S. stocks opened with the Dow Jones Industrial Average rising by 0.58%, the S&P 500 increasing by 0.41%, and the Nasdaq up by 0.37%. The Nasdaq Golden Dragon China Index fell by 2.2%, with popular Chinese stocks generally declining; NIO Inc. (NIO.N) dropped by 7%, Baidu (BIDU.O) fell by 3%, Beike (BEKE.N) decreased by 4%, and Alibaba (BABA.N) was down by 3%.

  • Hassett Hopes Powell Will Leave the Fed Soon for Walsh to Take Control Easily

    On May 22, Kevin Hassett, Director of the National Economic Council, expressed in an interview regarding outgoing Federal Reserve Chairman Jerome Powell and incoming Chairman Kevin Walsh: "I hope he can leave soon so that Kevin can fully and easily take charge of the Fed." Hassett stated, "I hope Jay (Powell) can step aside so we can arrange for another governor to join the Federal Reserve." He also reiterated, "We absolutely respect the independence of the Federal Reserve."

  • U.S. Stock Index Futures Rise Sharply, S&P 500 Futures Up 0.4%

    U.S. stock index futures have risen sharply in the short term, with S&P 500 futures up 0.4%.

  • BlackRock Transfers 1,587 BTC and 17,815 ETH to Coinbase

    On May 22, according to OnchainLens monitoring, BlackRock transferred 1,587 BTC, valued at approximately $122.55 million, and 17,815 ETH, valued at approximately $37.79 million, to Coinbase.