USDC and BUSD issuance growth outpaces Tether’s USDT

Since September 2020, the growth rate of Tether’s (USDT) supply was 82%. In the same period, the USD Coin (USDC) grew by 243%, and Binance USD (BUSD) by 512%. This is stated in the Arcane Research report.

The sharpest surge in USDC and BUSD issuance occurred in September 2020. The USDT issuance volume surpassed its rivals only in November last year.

Data: CoinGecko, Arcane Research.

USDC stablecoins are issued by the CENTRE consortium, which includes the regulated company Circle and the largest American cryptocurrency exchange Coinbase. The BUSD tokens are issued by the regulated company Paxos for the Binance cryptocurrency exchange.

«Tether tokens are typically used, issued and redeemed by large trading firms such as Alameda, Galaxy, OSL, 3 Arrows and B2C2», analysts noted.

Experts attribute rising demand for stablecoins to growing trading activity in which Tether plays a key role.

«Despite active competition among stablecoins, the dollar value of all issued USDT significantly exceeds the figures for USDC and BUSD», the report states.

Analysts from Coin Metrics have observed a rapid growth in the volume of transactions in the USDT stablecoin on the Tron blockchain. In their view, this is related to high fees in the Ethereum network.

In September 2020, court ordered Bitfinex and Tether to hand over financial statements to the prosecutor.

On January 20, Bitfinex and Tether requested a one-month extension to hand over the documents gathered in the case to the New York prosecutor’s office.

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