USDT and USDC are the leading stable coins in crypto with huge market caps. Naturally, when choosing one of them, a big factor is which one offers cheaper fees.
While both stablecoins are pegged to the US dollar, their transaction and trading fees can differ considerably. For instance, USDC generally offers lower fees, often ranging from 0.1% to 0.15%, whereas USDT’s fees, particularly on the Ethereum network, can be higher due to gas price fluctuations and network congestion. But this isn’t always true in 100% of cases.
Let’s take a closer look at USDT and USDC, what their similarities and differences are, and most importantly, what their fees are like.
Key highlights:
USDT fees can be higher on Ethereum due to congestion, while USDC fees are generally lower and more stable.
Network congestion affects fees for both stablecoins, but USDC typically maintains lower fees on average.
The choice of blockchain influences transaction costs. For example, Tron and Avalanche offer lower fees compared to Ethereum.
Cross-border transactions may favor USDC due to generally lower fees, despite USDT’s wider network integration.
USDT has a higher market cap and liquidity, so it’s more widely supported compared to USDC.
Understanding USDT and USDC
USDT, launched in 2014, is known for its huge market cap (around $140 billion as of January 2025) and liquidity, while USDC, introduced in 2018, focuses on transparency and regulatory compliance with regular monthly audits.
If you understand these two top stablecoins, it will help you decide which one might better suit your needs.
What is USDT?
USDT, or Tether, is a fiat-backed stablecoin that was launched in 2014 with the aim of maintaining a 1:1 value with the US dollar.
You’ll find it widely used for trading and liquidity in the cryptocurrency market, partly because it operates on multiple blockchains, including Ethereum, BNB, Solana, Tron, and others. This makes it accessible with a lot of liquidity across various platforms and exchanges.
USDT's market cap is notably higher than that of USDC, which makes it the leading stablecoin by volume, despite facing scrutiny over its reserve transparency and audit practices. Still, Tether has kept its peg steady for more than 5 years, despite some concerns about its backing.
When using USDT, you might notice that transactions involving this stablecoin may incur higher gas fees, particularly when processed on Ethereum, compared to USDC, which often has lower and more consistent transaction costs.
What is USDC?
USDC, or USD Coin, is a fiat-backed stablecoin that offers a different approach to maintaining a 1:1 value with the US dollar compared to its counterpart, USDT. Launched in 2018 by Circle and Coinbase, USDC emphasizes transparency and regulatory compliance. It is currently the only large-cap MiCa-compliant stablecoin.
It’s governed by the Centre Consortium and undergoes monthly audits by Grant Thornton LLP to verify its reserves. These reserves are held in regulated financial institutions so that users are assured it’s safe to use.
USDC is designed to be reliable, thanks to its audit features and transparent operations. It’s a preferred choice for those who prioritize security.
With a market cap of approximately $43 billion as of January 2025, USDC is also compatible with multiple blockchains, just like USDT. The focus on transparency helps users trust that each USDC is backed by a corresponding dollar in the reserve.
While USDC doesn’t have the same market cap and liquidity as USDT, it’s arguably safer to use, especially if you hold for the long term.
Types of fees to compare
To understand the costs associated with USDT and USDC, you need to understand the various types of fees.
Transaction fees
When comparing transaction fees for transferring stablecoins between wallets, the specific blockchain network used and the service provider’s conditions can greatly affect the total cost.
Generally, USDC tends to have lower average transaction fees of about 0.1% to 0.15% of the transaction amount, depending on the network and current congestion levels. Sometimes, USDC transfers can be completely free when using the Base network.
On the other hand, USDT can have slightly higher transaction fees, though not necessarily by that much.
To understand the transaction fees better, here are the key points:
Network Congestion: Both USDT and USDC fees can increase with network congestion. However, USDT might be more affected due to its widespread use across multiple blockchains.
Blockchain Network: The choice of blockchain, such as Ethereum, Tron, or Algorand, can considerably impact transaction fees. For example, using either USDT or USDC on the Tron network can offer faster and cheaper transactions compared to Ethereum.
Service Provider Fees: Minimum transfer amounts and service provider fees also play a role in determining the overall cost of transferring these stablecoins.
Exchange fees
Exchange fees are associated with trading USDT and USDC pairs on popular exchanges. We recommend you check out our list of the best no-fee crypto exchanges, which will help you minimize your trading fees.
Exchange fees for both USDT and USDC can vary notably among platforms, but there are some general trends to note.
When trading USDT/USDC pairs, you’ll typically encounter trading fees ranging from 0.1% to 0.3% on most exchanges. However, liquidity conditions can impact the final cost of trades, so you should assess the fee structures of the exchanges you plan to use.
Minimum transfer amounts imposed by some platforms can also influence the overall fee cost for transferring USDT or USDC.
USDC often has an advantage regarding lower fees due to its optimized structure for smart contracts on Ethereum. In contrast, USDT transactions can incur higher gas fees, especially during periods of Ethereum network congestion. When the network is under a high load, you might even see that your transaction is unconfirmed, which you can generally solve by paying a higher gas fee.
Withdrawal fees
The cost of withdrawing USDT and USDC from exchanges can also vary. It’s primarily driven by the specific blockchain network used and the exchange’s policies.
For instance, USDT withdrawal fees on the Ethereum network can be higher due to congestion and gas prices. In contrast, USDC often offers more stable and lower withdrawal fees, regardless of the network.
Both stablecoins benefit from lower transaction costs on certain blockchains, such as Solana or Tron, both of which are also some of the cheapest crypto to transfer. Solana would be especially cheap, as a transaction on the Solana network generally only costs around $0.0012.
Network fees
Network fees for USDT and USDC vary depending on - you guessed it - the network you’re using.
As mentioned, USDT transactions on the Ethereum network (ERC-20) typically incur higher gas fees compared to USDC. But, if you’re using TRC-20 for USDT (or USDC), the fees are often quite low. Tron network is typically more efficient than Ethereum, though that can be said for virtually any network other than Ethereum.
On the flip side, the Ethereum network has way more coverage, so using alternative networks won’t always be possible. However, when it is, I’d suggest going for a non-Ethereum network.
USDT vs USDC: Detailed fee comparison
Gas Fees: USDC often has lower gas fees, especially on Ethereum, due to its optimized transfer fee structure.
Network Congestion: USDT can incur higher costs during network congestion, while USDC benefits from a clearer fee schedule.
Minimum Transfer Amounts: Some platforms impose minimum transfer amounts, which can affect overall costs for both USDT and USDC, with USDC sometimes offering better conditions for lower transfers.
Overall, if your main goal is to pay less fees, my general advice is this: In terms of fees, USDC typically beats USDT, and virtually every network beats Ethereum.
Additional considerations beyond fees
Beyond transaction fees, there are several other factors to think about when choosing between USDT and USDC. You should consider the liquidity and trading volume of each stablecoin.
Higher liquidity can lead to reduced transaction slippage and better prices in the market. This is particularly important if you’re trading with substantial volumes or need to make quick transactions. Generally, USDT has higher liquidity than USDC.
You also need to think about the accessibility and convenience offered by each stablecoin. USDT and USDC both operate on multiple blockchain networks, which affects their speed and cost. For example, if you need to make cross-border transactions, USDC might be more advantageous due to its fast and low-cost transactions.
On the other hand, USDT might be preferable if you need fast and easy fiat conversions.
Network conditions are another critical factor. Since transaction fees can fluctuate considerably depending on network congestion, you should monitor and adapt to these conditions to minimize costs. This applies to both USDT and USDC.
Real-world use case scenarios
Let’s take a look at some practical, real-world scenarios that show when one stablecoin might be more advantageous than the other:
Cross-border remittances
USDC Advantage: If you’re sending money internationally, USDC often proves to be the cheaper option due to its lower transaction fees and consistent fee structure.
USDT Consideration: While USDT is widely accepted, the higher gas fees on Ethereum can make it less suitable for cross-border transfers (unless you opt for an alternative network).
High-frequency trading
USDT Advantage: If you often day-trade on exchanges, you may favor USDT due to its higher liquidity and market volume. This reduces the chance of slippage during rapid trades.
USDC Use Case: If you’re looking to minimize overall trading fees, USDC can be advantageous on exchanges optimized for its use, like Coinbase.
Long-term holding and savings
USDC Advantage: Thanks to its transparent reserve audits and regulatory compliance, USDC is probably a safer choice if you’re holding stablecoins over the long term.
USDT Use Case: Despite the lack of regular audits, USDT’s established market dominance and long-term peg stability make it a viable option.
Business transactions
USDT Advantage: Businesses dealing with large payments might prefer USDT for its higher liquidity and widespread acceptance across exchanges. It makes it easier to convert to fiat or other crypto assets.
USDC Advantage: For companies that prioritize regulatory compliance and transparent operations, USDC is often the preferred choice, especially in regions with strict financial regulations.
Crypto gaming and DeFi platforms
USDC Advantage: Many gaming and DeFi platforms integrate USDC due to its stability and optimized fee structure. Users participating in staking or liquidity pools may find USDC more cost-effective.
USDT Use Case: Some platforms prioritize USDT for its accessibility and larger network presence. It’s a viable choice in ecosystems that heavily rely on its liquidity.
The bottom line
USDC generally offers lower fees. USDT can incur higher fees, particularly on the Ethereum network due to gas price fluctuations and network congestion. For smaller transfers and high-volume trading scenarios, USDC is often the more cost-effective option, especially in environments with high liquidity and optimized fee structures.
However, USDT is more widespread, and if you need high liquidity and wider coverage, USDT can simply be more convenient to use. If you’re looking to store your stablecoins and other crypto for the long term, check out our article going over the best crypto hardware wallets.