Since it gained significant prominence in the crypto blowup of 2020, Stablecoins has increased its supply. The current supply of stablecoins as of this article is $142 billion.

We would frequently hear that "crypto is the most volatile asset out there." However, stablecoins like USDC and USDT provided a means of exchange in which traders may find nearly the same comfort as holding cash.

What are Stablecoins?
Stablecoins are a form of cryptocurrency that aims to keep their price consistent over time by being tied to the value of an underlying asset, such as the US dollar. They intend to provide all of the benefits of cryptocurrency while striving to prevent extreme volatility.

With an understanding of what stablecoins are all about, let’s take a look at the differences between USDC and USDT.

__ USDC__
USD Coin (USDC) is a stablecoin developed in 2018 by Centre, a partnership formed by Circle and Coinbase. USDC is an open-source protocol, which implies that anybody can use it, not just Circle and its partners.

USDC is a tokenized US dollar, with one USDC coin worth exactly one US dollar. USDC's value is intended to be steady, making it a stablecoin.

You might be wondering how USDC maintains its 1:1 peg to the US currency. If you use fiat cash to buy one USD Coin, the fiat currency is deposited and kept as one US dollar, and the new USDC is produced. If you trade a USD Coin for fiat cash, the USDC is burned when the fiat money is returned to your bank account.

USDC works well with several blockchain currencies, some of which are:
Ethereum
TRON
Solana
Stellar
USDT (Tether)

Tether Limited, located in Hong Kong, originally issued USDT in 2014 to bridge the crypto-fiat divide. Tether provided consumers with access to a platform-agnostic, blockchain-based US Dollar for the first time, with many of the technical advantages of Bitcoin, Ethereum, and other crypto assets, such as high liquidity but none of the volatility.

Tether built a means to deliver crypto-dollars to anybody with speed, transparency, and cheap cost, expanding the use case of cryptocurrencies to remittances, payments, and more.

USDT will be produced when it is required. When crypto exchanges demand USDT as a crypto pairing, Tether will create more tokens and deposit USD in a savings account. Because everyone is already familiar with USD, USDT makes it easier for investors to trade between USD and other cryptocurrencies. They can examine the market and grasp price patterns more quickly than traditional cryptocurrencies.

When large organisations, such as banks, desire to invest in digital assets, they often convert fiat USD to USDT before purchasing other currencies. So, if you observe a substantial increase of USDT in circulation in a short period, it might indicate that there is likely to be a significant demand for cryptocurrencies like Bitcoin.

The difference between USDC and USDT

The difference between USDT and USDC is comparable to the size of eggs you prepare for your omelette. Both are stablecoins that are backed by USD. However, because they are owned by various corporations, some of the specifics change.

Differences between USDT and USDC
USDT was developed by Tether, while USDC was developed by Centre (Established by Circle and Coinbase)

USDT is currently ranked number 3, while USDC is ranked number 4 on the Tether price rank.

USDT was launched in 2014, while USDC was launched in 2018.
USDT’s auditor is Freeh Sporkin & Sullivan (Law Firm). USDC’s auditor is Grant Thornton

USDT’s blockchain channels are Bitcoin, Ethereum, EOS, Tron, SLP, and OMG; while USDC’s blockchains are: Ethereum, Algorand, and Solana.
Liquidity.
All investors and traders take liquidity and trading volume into account. While Tether (USDT) has an advantage in this area, USD Coin (USD) has a significant trading volume. And it is freely available on various major cryptocurrency exchanges.

Tether (USDT)

Available on almost every top cryptocurrency exchange.
Largest stablecoin by market cap and circulating supply.
Highest global trading volumes compared to all other stablecoins
A significant amount of trading pairs across all crypto asset types.

USD Coin (USDC)

Available on most cryptocurrency exchanges.
Second largest stablecoin by market cap and circulating supply.
Above-average global trading volumes compared to all other stablechins.
An above-average amount of trading pairs across all crypto asset types.