How Tether’s shrinking market share can be good for Crypto: Opinion

Tether still has the largest market share of all stack coins, but it is now around 43%, according to CoinGecko. Glassnode reports that the USDT market share is slightly higher at 45%, but still shows the same downward trend for its dominance.

According to the Tether Transparency Report, USD 66 million is in circulation, a figure that has been steadily declining this year and is down 20% from the peak of 83 billion in mid-May.

More competition in the stablecoin area means that not all digital eggs are in the same basket. Any regulatory action against one will not cause the whole system to fall as previously feared.

Over the past two years, the dominance of #Tether has been in macro decline.USD USD has fallen from 88.3% of the stablecoin market to 45.2% today, now below half of the market.$ USDC dominance has grown 4.2 times, $ BUSD with 7.5x, and $ DAI with 3.9x over the same 2-year time frame. pic.twitter.com/g7NqkIKtp8

– glassnode (@glassnode) July 7, 2022

Stablecoin market share is rising

Stablecoins now have a larger share of the crypto market than ever before. Their share of the total pie has increased this year as crypto prices have crashed.

According to CoinGecko, the total market value of stablecoin is $ 154 billion, which is 15.2% of the total amount of trillions of dollars for all cryptocurrencies.

Tether’s main rival is Circle, which has seen supply increase as circulating USDT has shrunk. There is currently 55.7 billion USDC in circulation, according to the company, which gives a market share of 36%. The company claims that “every digital dollar in the USDC is 100% backed by cash and short-term US government bonds,” which is why users have switched to it.

Tether released a report in May assuring users that the reserves were fully supported and that they were reducing exposure to certificate holdings. However, the ever-threatening fear of regulation has created opportunities for rivals.

The third largest stable currency is the Binance USD, which has seen its market share increase by 7.5 times in the last couple of years. It is currently BUSD 17.8 billion in circulation, giving it a market share of 11.5%. The decentralized DAI stablecoin is in fourth place with 6.4 billion circulating and a share of 4.2%.

The demise of the Terra ecosystem has spurred other copycats, such as Tron’s USDD, but it is still trading under pressure and has never really made an impact.

Aave unveils GHO Stablecoin

The latest crypto platform to unveil a new stack coin is the DeFi lending protocol Aave. On July 7, a proposal was posted on the Aave governance forum for a new dollar-denominated GHO stablecoin.

Like Maker’s DAI, it will be supported by users’ security on the platform, which will be set up to characterize stablecoin.

The new offer enters a crowded stablecoin market consisting of at least 85 different fiat-attached tokens.