News

Tether Has Over 50% Of The Stablecoin Market, The Highest In 14 Months

Key Points:
  • Tether (USDT) is once again consolidating as crypto’s preferred pegged asset, with its stablecoin market share approaching 50%.
  • Tether, Circle, and Paxos, among other stablecoin companies, enable token holders to swap stablecoins for US dollars.
As the SEC prepares to crack down on dollar-pegged tokens, Tether, the oldest stablecoin, is as strong as ever.

Tether (USDT) is once again establishing itself as crypto’s preferred pegged currency, with its stablecoin market share approaching 50% for the first time since December 2021. The leading stablecoin issuer has deployed an extra $2.4 billion USDT this year, bringing the total circulating supply to $68.4 billion, marking a 3% increase.

Meanwhile, USDC, Circle’s offering, has dropped more than $3.3 billion in supply year to date. The crypto industry presently has $41.2 billion USDC floating about it, a 7.5% decrease. Binance’s branded stablecoin, BUSD, managed by Paxos in New York, ranks third with $16.1 billion.

BUSD has lost around $590 million in supply since the beginning of the year, representing a 3.5% decrease. Following the announcement of the SEC’s decision to sue, all eyes will be on that amount potentially plummeting. In a Wells notice, the regulator apparently argued that BUSD is an unregistered security.

Tether, Circle, and Paxos, among other stablecoin companies, enable token holders to swap stablecoins for US dollars. Their supply grows when market players purchase the tokens directly from the issuers. Stablecoin supplies, on the other hand, diminish since tokens are burned when they are redeemed, albeit tokens are frequently reissued to new consumers without being burned.

With roughly $5.19 billion, fourth-place DAI, the decentralized stablecoin controlled by MakerDAO, is substantially less than the top three. DAI’s market worth has dropped by $563.4 million in 2023, equivalent to 10% of its supply, making it the greatest loser among the top-tier stablecoins.

DAI’s immediate rival with an algorithmic component, FRAX, has stayed consistent over the last three months, remaining in fifth place. TrustToken’s trueUSD (TUSD) is ranked sixth, but it stands out for growth, having added $190.4 million this year, or a 25% increase in supply.

TUSD is touted as being entirely backed by US dollars, although its attestations contain cash equivalents and other short-term liquid assets. They’re comparable to Tether’s and Circle’s, but with a smaller granularity. This year, the stablecoin market has dropped by 1.5%, losing little more than $2.1 billion.

Total stablecoin dominance peaked at just under 20% when FTX crashed in November, but has since fallen to 14.38% as crypto markets rebounded.

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.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News

Chubbi

Recent Posts

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

6 minutes ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

13 minutes ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

37 minutes ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

2 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

3 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

4 hours ago

This website uses cookies.