$USDC
USDC and USDT together account for over 80% of the stablecoin market’s capitalisation.
USDC (issued by Circle Internet Group) is fully backed by cash and cash equivalents in US-domiciled banks, while USDT (issued by Tether Limited) includes some less conventional assets in its reserves (e.g., precious metals, crypto) in addition to US Treasuries.
Stablecoin transaction volumes are very large and increasing: one analysis shows daily volumes (weekend + weekday) of billions of USD.
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✅ What’s working in their favour
They serve as digital dollar substitutes in crypto markets, enabling users and platforms to trade, settle, and hold value with minimal volatility compared to other crypto assets.
Their use is expanding in payments, cross-border transfers and as “on-chain cash” which gives them strong utility.
USDC especially benefits from higher transparency and regulatory alignment (which improves trust for institutional users).
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⚠️ Risks & considerations
Although pegged to the USD 1:1, stablecoins carry run risk: research estimates a 3–4% annual run-probability under stressed conditions.
Reserve backing, audit frequency and issuer transparency vary between USDC vs USDT, which means they may have different risk profiles.
Macro-financial linkages: flows in/out of stablecoins can affect short-term US Treasury yields (because these coins hold Treasuries) and thus broader interest rate dynamics.
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🎯 My Summary View
If you're using stablecoins for trading/settlement, both USDC and USDT are core instruments: high liquidity + broad adoption.
For conservative usage or long-term hold: USDC may offer a slightly stronger trust profile (because of transparent backing) though nothing is risk-free.
It remains important to monitor reserve disclosures, regulatory changes, redemption mechanisms and macro environments.
They’re less about price-appreciation and more about stability + utility — the “peg” and confidence in redemption matter more than gains