In the previous year, Tether processed almost $18.2T value in transfers. With this, the platform has outpaced Mastercard and Visa (the payment processors which were ahead of it formerly). Tether confirmed this news in a tweet published on the 14th of January. On the other hand, Mastercard was able to process nearly $14.1 trillion in transactions while the valuation process by Visa was approximately $7.7 trillion during the same year.
Settlement Volume of Tether Stablecoin in 2022 Outpaces Mastercard and Visa
The high transfer volume of Tether determines that stablecoins have been witnessing a lot of advancement in recent years. Notwithstanding the difficulties experienced by the crypto market, the stablecoin industry has considerably progressed. The adoption of stablecoins was elevated to a great extent in the jurisdictions where the native fiat currency is having a vulnerable position during the present scenario.
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Notwithstanding the increasing adoption of stablecoins in the previous year, Tether’s situation was not very positive. The top stable coin has gone through several ups and downs in 2022. This was the year when a lot of concerns grew about Tether because of the Terra UST crash (that took place in May) as well as the FTX fiasco (that occurred in November). When the FUD regarding the Terra collapse was at its peak, Tether lost its USD peg for some time.
During that time, the stablecoin issuing company privileged redemptions of nearly $10 billion. After that, the reports pointed out that many traditional financial organizations moved toward short positions against the stablecoin due to speculations regarding its financial health. Though USDT has maintained its dominance within the market, its competitors like BUSD and USDC outcompeted it during the same year.
The market capitalization of Tether dropped from its all-time high of $83.13B to lower than $65.31B during the respective period. On the contrary, the market capitalization of USDC elevated to $56B in advance of a slump. In 2022, the centralized crypto exchange platforms such as Coinbase persuaded customers to transform their holdings in USDT into USDC.
Investors Prefer USDC against USDT for Enhanced Security
Recently, the stablecoin was delisted by Crypto.com for Canadian consumers due to its measures related to regulatory compliance. As mentioned in the statistics of Glassnode, the transaction volumes of USDC crossed USDT nearly 5 times at the denouement of 2022. The adoption of USDC grew as investors thought it to be a safer option as compared to USDT.