How Tether’s Falling Market Share May Benefit Crypto

Tether was the stablecoin king, controlling about 90% of the market. Its market share has now shrunk to around half of what it once was, which can only be good for cryptocurrency.

According to CoinGecko, Tether still has the greatest market share of all stablecoins, although it is now about 43%. According to Glassnode, the USDT market share is slightly greater at 45%, but it still displays the same declining trend in its supremacy.

According to the Tether transparency report, 66 million USDT are in circulation, a figure that has been progressively falling this year and is down 20% from its peak of 83 billion in mid-May.

Because there is more competition in the stablecoin area, not all digital eggs are in the same basket. As previously feared, any conceivable regulatory action against one will not bring the entire system down.

Stablecoins now control a larger portion of the cryptocurrency market than ever before. Their share of the entire pie has increased this year as cryptocurrency prices have plummeted.

According to CoinGecko, the entire market cap for stablecoins is $154 billion, or 15.2% of the trillion-dollar total cap for all crypto assets.

Tether’s biggest competitor is Circle, whose supply has increased as the supply of circulating USDT has decreased. According to the firm, there are currently 55.7 billion USDC in circulation, representing a market share of 36%. According to the company, “every digital dollar of USDC is 100% backed by cash and short-dated US treasuries,” which is why consumers have switched to it.

In May, Tether issued a report in which it assured users that its reserves were adequately guaranteed and that it was minimizing its exposure to commercial paper holdings. However, the looming threat of regulation has generated opportunities for competitors.

Binance USD is the third-largest stablecoin, with a market share that has increased by 7.5x in the last two years. There are currently 17.8 billion BUSD in circulation, giving it an 11.5% of the market share. The decentralized DAI stablecoin is ranked fourth, with 6.4 billion coins in circulation and a 4.2% market share.

The Terra ecosystem’s death has spawned various clones, such as Tron’s USDD, although it is still trading below its peg and has never gained traction.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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