USDT Vs. USDC Vs. DAI: Best Stablecoin In 2024

Stablecoins are considered an improved version of cryptocurrencies due to their exchange rate stability. Their value is pegged to fiat currencies, cryptocurrencies, or raw materials, which helps reduce their volatility. At the same time, stablecoins retain all the digital assets’ advantages, among which are their decentralized nature and profitable transactions.

USDT, USDC, and DAI are the most in circulation due to their convenient pegging to the US dollar. In this article, we will tell you more about these stablecoins and compare them to see which one is the best to invest in.

What Is USDT?

USDT (Tether) is the most popular stablecoin that was issued by Tether Limited in 2015. Its value in USD is equated at a ratio of 1 to 1, so market fluctuations have no effect on its exchange rate.

USDT operates on different blockchains, including TRON, Ethereum, BSC and others. Moreover, the coin is supported by almost all crypto wallet providers and exchanges, therefore, it is used for transfers between different platforms. Due to the fact that USDT is pegged to fiat USD, it is actively used both for trading and as a store of value.

What Is USDC?

USDC (USD Coin) is another stablecoin that is equal in value to the US dollar. In comparison with USDT, it has less liquidity, which may also be due to the youth of the coin: USDC appeared in 2018. The cryptocurrency is issued by Circle company in partnership with the Coinbase crypto exchange.

USDC is available on many crypto exchanges that support Ethereum and Solana blockchains, as the asset operates on them the most. Stablecoin is used most often in crypto trading, making payments, and interacting with DeFi applications. This widespread use is associated with its transparency and strict compliance with regulatory requirements.

What Is DAI?

DAI is a stablecoin of US dollar value. It emerged in 2016 with the help of MakerDAO Foundation and is part of the Makerbot ecosystem.

DAI coins run on the Ethereum blockchain, and it gives the coin the advantage of supporting smart contracts. It is more prone to volatility than USDT and USDC coins, but it is considered a popular DeFi solution. That is largely due to its ability to retain ownership of private keys and bypass KYC procedures before transactions.

USDT Vs. USDC Vs. DAI: Key Differences

As we have found out, USDT, USDC and DAI are stablecoins, the value of which is equal to the US dollar’s price. At the same time, they have some differences that determine their capabilities and functionality. We have collected all the main characteristics of the three stablecoins in the table below.

Crypto (Stablecoin)	Issuer	Support	Blockchain	Use Cases	Speed (Range, on all blockchains)	Fees (Range, on all blockchains)
USDT	Issuer Tether Limited	Support Fiat reserves	Blockchain More than 10 (e.g., TRON, Ethereum, Solana, etc.)	Use Cases Trading, transfers, store of value	Speed (Range, on all blockchains) From 1 second to a few minutes	Fees (Range, on all blockchains) From a few cents to 20 USD
USDC	Issuer Circle & Coinbase	Support Fiat reserves	Blockchain 8 blockchains (e.g., TRON, Ethereum, Polygon, etc.)	Use Cases Trading, DeFi apps	Speed (Range, on all blockchains) From less than 1 second to a few minutes	Fees (Range, on all blockchains) From a few cents to 20 USD or more
DAI	Issuer MakerDAO	Support Cryptocurrency collateral	Blockchain Ethereum	Use Cases DeFi apps, store of value	Speed (Range, on all blockchains) From 15 seconds to a few minutes	Fees (Range, on all blockchains) From 1 to 20 USD or more

USDT Vs. USDC Vs. DAI: A Head-To-Head Comparison

Let’s now compare the stablecoins with each other by evaluating them on criteria such as support, market capitalization for 2024, and main use cases. These factors create the primary image of a particular cryptocurrency.

USDT Vs. USDC

Both USDT and USDC are backed by fiat reserves but have the difference more than 3 times in market capitalization: $105 billion for USDT against $32 billion for USDC. USDT also wins over USDC in terms of applications where transfers and trading between different blockchains are possible. USDC, on the other hand, is a bit more limited in this list as it is used more in regulated environments, which in turn increases the transactions’ security.

DAI Vs. USDT

The DAI stablecoin is backed by cryptocurrencies and has a market capitalization of $5.3 billion. On the other hand, USDT’s support is based on fiat currencies, and its market capitalization is $105 billion, 20 times more than DAI. USDT is widely used in trading and transfers, but DAI has an advantage because of its suitability in the DeFi sphere due to its greater transparency.

DAI Vs. USDC

USDC is backed by fiat reserves, unlike DAI, where cryptocurrencies are responsible for this. The market capitalization of USDC is higher than DAI’s: $32 billion versus $5.3 billion, which is 6 times higher. USDC is also safer due to its use in regulated environments, whereas DAI mainly operates in the DeFi sphere. However, the latter offers the advantage of remaining anonymous.

What Should I Buy: USDT, USDC Or DAI?

The choice of whether to invest in USDT, USDC or DAI should depend only on your priorities. So, if you appreciate stablecoins for their wide acceptance and prevalence on various exchanges, then USDT is your option. If the most important factor for you is security, USDC will suit you best. If you prefer maximum decentralized assets and need anonymity, then you should choose DAI.

We hope this guide has helped you see the difference between USDT, USDC, and DAI stablecoins, and now you understand what will suit you best. For a better choice, keep an eye on market dynamics and cryptocurrency news, and learn how to invest easily and effectively. Stay with the Cryptomus blog to learn all the necessary tools and ways to work with cryptocurrencies.