Is the USDT throne up for grabs in the last week of 2022? These new data suggest…

  • Global Stablecoin Transfer Volume Sees Massive Growth, But USDT Volume Is Shrinking
  • USDC manages to outperform USDT in trade volume and value, however weighted sentiment for USDT is improving

In a recent development, it was observed that despite the volatility the market is facing, the total trading volume of stablecoins set a new record high in 2022, reaching US$7.4 trillion. Even though the overall stablecoin space has seen growth, the same could not be said for USDT.

USDT transfer volume fell by 200 billion. From 3.7 trillion in 2021, the volume of USDT fell to 3.5 million in 2022.

In this sector, USDC dominated the stablecoin space as it accounted for 63% of the overall stablecoin transfer volume according to Dune Analytics. On the other hand, USDT managed to capture 18.4% of the overall stablecoin transfer volume.

Source: Dune Analysis

The social angle

One of the reasons for the decline in USDT transfer volume could be the lack of activity the stablecoin is witnessing on the social front. According to LunarCrush, USDT social mentions have fallen 13.5% over the past month. In addition, its social commitments decreased by 23.3% during the same period.

Along with its declining activity on the social front, there was a lot of FUD that had surrounded the stablecoin in the recent past. Despite the uncertainty around USDT, the stablecoin managed to get into the good graces of the crypto community as its weighted sentiment improved.

According to data provided by Santiment, sentiment for USDT had been negative for the first half of December. However, over time, the weighted sentiment began to move in a positive direction. This indicated that the crypto community had started to have a positive view of USDT at the time of writing.

Source: Santiment

Soak in all there is

Despite the positive sentiment for USDT, its network growth has declined across most networks. From the data collected by Santiment, it has been observed that the network growth for USDT on Polygon (yellow), Ethereum (blue) and Optimism (red) has decreased significantly over the past few days.

This indicated that the frequency with which new addresses transferred USDT had decreased across all platforms.

Source: Santiment

Another area where USDT lost its dominance was in terms of transaction value. Based on data from Dune Analytics, it was observed that USDC also managed to outperform USDT in this regard.

At press time, the aggregate transaction value for USDT was $710 million and for USDT $4.4 billion.

Source: Dune Analysis

Despite all these factors, USDT still managed to maintain its dominance in terms of market capitalization. At press time, the market capitalization of USDT was $66 billion according to CoinMarketCap.

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