In a recent statement from Coinbase on Twitter, said that their native coin (USDC) is more secure than it’s counterpart USDT. Citing that their coin is backed by U.S regulators and is way more appealing.
USDC and USDT are Cryptos pegged or backed by the same amount of the fiat currency, USD (U.S. Dollar). USDC and USDT are also known as stablecoins. Stablecoins are designed to decrease the volatility of cryptos. They minimize fluctuations and keep the value steady. Stablecoins can also be backed by assets other than cash, such as gold.
USD stablecoins have a fixed value, which enables traders a way to enter and exit positions in the volatile crypto ecosystem. USD stablecoins work as a store of value. USD-backed stablecoins are becoming the norm, just like how about 90% of forex trading involves the U.S. Dollar which is the reserve currency of the world.
Today, stablecoins have become very popular. The demand for stablecoins has shot up since 2021. In January 2022, the combined market cap of stablecoins exceeded $151 billion. In this article, we will discuss the two popular stablecoins, USDT and USDC.
