Stablecoins play a pivotal role in the cryptocurrency ecosystem, serving as bridges between traditional finance and decentralized applications. Among them, USDC and USDT dominate the market, each backed by different institutions and governed by distinct operational models. But beyond narratives and marketing claims, what does on-chain data reveal about user behavior, adoption trends, and real-world usage?
With Bitquery’s Token Holders API, developers can dive deep into wallet-level activity for any ERC-20 token on Ethereum and other EVM-compatible chains. This powerful tool enables granular analysis of holder counts, transaction volumes, whale movements, and distribution inequality — all critical metrics for understanding a token’s health and utility.
In this article, we’ll compare USDC vs USDT using on-chain data from the past month, exploring key questions such as:
- Which stablecoin has more holders?
- How are user bases changing over time?
- Who are the top holders, and how concentrated is ownership?
- Which token sees higher daily spending volume?
Let’s uncover what the blockchain tells us — beyond the hype.
Comparing Holder Counts: USDT Leads in Adoption
One of the most straightforward indicators of popularity is the number of unique wallets holding a token. Using the Token Holders API, we queried Ethereum-based addresses with non-zero balances for both USDC and USDT as of October 21, 2023.
The results were clear:
- USDC: ~1.797 million unique holders
- USDT: ~4.591 million unique holders
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This means over 2.8 million more wallets hold USDT than USDC, highlighting its broader adoption across exchanges, DeFi platforms, and peer-to-peer transactions.
While USDT launched in 2014 (originally as RealCoin), USDC entered the scene in 2018 — giving Tether a significant head start. However, holder count alone doesn’t tell the full story. Growth momentum matters just as much.
Monthly Holder Trends: USDC Gains While USDT Loses
Despite USDT’s lead in total holders, recent trends suggest shifting dynamics.
Over the past month:
- USDC gained over 13,000 new holders
- USDT lost approximately 15,000 holders, despite short-term spikes
This indicates stronger organic growth for USDC, possibly driven by increased trust due to its transparent reserves and regulatory compliance. Meanwhile, USDT’s slight decline may reflect ongoing skepticism around its reserve audits or migration to alternative stablecoins.
These fluctuations underscore an important insight: popularity isn't static. On-chain data allows us to track real-time sentiment shifts before they appear in mainstream narratives.
Daily Liquidations: Who’s Selling Off?
To understand market confidence, we analyzed how many wallets completely emptied their holdings each day — a strong signal of exit behavior.
Key findings:
- USDC liquidations peaked at ~15,000 wallets per day
- USDT liquidations reached ~47,000 wallets per day
Even at its lowest point, USDT daily liquidations (~24K) exceeded USDC’s peak (~15K). This suggests higher turnover among USDT holders, potentially linked to arbitrage trading, exchange rebalancing, or risk aversion.
There was no consistent weekly pattern in liquidation volume for either token, indicating that exits are driven more by macro conditions than cyclical behavior.
Top Holders and Whale Activity
Large holders — often called "whales" — can influence market dynamics through large transfers or sell-offs. To assess centralization risks, we examined:
Top 10 Holders
- USDT: Top 10 wallets control 24.05% of supply (~$39B)
- USDC: Top 10 wallets hold 12.17% (~$23B)
This shows significantly greater concentration in USDT ownership, which could pose systemic risks if major holders decide to move funds suddenly.
Whale Count (Wallets > $1M in holdings)
- USDT whales: ~3,700
- USDC whales: ~2,200
Again, USDT leads — but here's the twist: both networks saw a decline in whale counts over the past month. The reasons remain speculative — possible causes include portfolio diversification, movement to Layer 2s, or conversion into other assets.
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Transaction Volume: Which Stablecoin Is More Active?
Usage frequency matters more than passive holding. We measured daily outgoing transaction value to determine real-world utility.
Results:
- USDC daily spending peaked at over $8 billion
- USDT peak daily spend: ~$5.5 billion
Despite fewer holders, USDC outpaced USDT in peak spending by $2.5 billion — suggesting it's being used more intensively in DeFi protocols, payments, or institutional flows.
This aligns with observations that USDC is increasingly favored in regulated environments and lending platforms due to its audited reserves and Circle’s compliance framework.
Inequality in Token Distribution
A healthy token economy should avoid excessive concentration. Three key metrics help evaluate distribution fairness:
Gini Coefficient
Measures inequality on a scale from 0 (perfect equality) to 1 (one holder owns everything).
Both tokens show high Gini scores — but with a caveat:
- Data includes centralized exchanges and smart contracts (e.g., Uniswap pools), which aggregate user funds.
- These entities inflate concentration metrics because their balances aren't attributable to single individuals.
Still, even after accounting for this bias, both tokens exhibit significant inequality, with a small number of addresses controlling disproportionate shares.
Nakamoto Coefficient
Indicates how many entities control 51% of the supply — a proxy for decentralization.
For both USDC and USDT:
- A surprisingly small number of wallets hold over half the circulating supply
- This raises concerns about potential manipulation or systemic fragility during market stress
While neither token is truly decentralized (as expected for fiat-collateralized stablecoins), the data reinforces the importance of monitoring top holder behavior.
Frequently Asked Questions
Q: Why is USDT more widely held than USDC?
A: USDT has been available since 2014 and is supported on more blockchains and exchanges globally. Its early mover advantage and liquidity depth contribute to broader adoption.
Q: Does higher spending volume mean USDC is “better”?
A: Not necessarily. Higher usage may reflect trust and integration in DeFi and institutional systems, but both tokens serve different user bases. Choice often depends on geography, platform support, and risk tolerance.
Q: Are whale movements a risk for stablecoins?
A: Yes. Large withdrawals or transfers can trigger volatility or redemption pressure. Monitoring whale activity via on-chain tools helps anticipate potential market impacts.
Q: Can on-chain data predict price changes?
A: While stablecoins aim to maintain parity with USD, sustained outflows or concentration shifts can signal underlying instability — especially if reserves are questioned.
Q: Is the Token Holders API free to use?
A: Bitquery offers tiered access with free trial options for developers. Full functionality requires an API key and subscription plan based on query volume.
Q: How accurate is on-chain holder data?
A: It reflects actual blockchain records — making it highly reliable. However, interpretations must consider nuances like exchange wallets, contract addresses, and multi-chain fragmentation.
Final Thoughts
The battle between USDC and USDT isn't about declaring a winner — it's about understanding evolving user preferences through objective data.
On-chain metrics show that while USDT maintains dominance in holder count, USDC is gaining ground rapidly with stronger growth trends and higher transaction intensity. Additionally, USDC exhibits less ownership concentration, which may appeal to risk-conscious users.
Ultimately, both tokens serve vital roles in the crypto economy. The real value lies in using tools like the Token Holders API to cut through speculation and base decisions on verifiable blockchain activity.
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By focusing on data-driven insights rather than narratives, investors, developers, and analysts can stay ahead of market shifts — not just react to them.