According to CoinGecko, Tether still holds the largest market share of all stablecoins, but now stands at around 43%. Glassnode reports that the USDT market share is a little over 45%, but still shows a similar decline in its dominance.
According to the Tether Transparency Report, there are 66 million USDT in circulation, a figure that has steadily declined this year and is down 20% from its peak of 83 billion in mid-May.
More competition in the stablecoin space means that not all digital eggs are in the same basket. Any possible regulatory action against anyone will not bring down the entire system as feared earlier.
In the last two years, the dominance of #tether A significant decline has been recorded.$USDT Stablecoins have fallen from 88.3% of the market to 45.2% today, which is now less than half of the market.$USDC dominance has increased by 4.2 times, $BUSD 7.5x, and $dai Up to 3.9x in the same 2y time frame. pic.twitter.com/g7NqkIKtp8
— glassnode (@glassnode) 7 July 2022
stablecoin market share increased
Stablecoins are now a bigger part of the crypto market than ever before. Their slice of the total pie has increased this year due to the drop in crypto prices.
According to CoinGecko, the total stablecoin market capitalization is $154 billion, which is 15.2% of the trillion-dollar total capital for all crypto assets.
Tether’s main rival is Circle, which has seen an increase in supply as circulating USDT shrinks. According to the company, there are currently 55.7 billion USDC in circulation, giving a market share of 36%. The firm claims that “every digital dollar of USDC is 100% backed by cash and short-term US Treasuries,” which is why users are adopting it.
Tether released a report in May assuring users that its reserves were fully backed and that it was reducing its exposure to commercial paper holdings. However, the ever-increasing fear of regulation has created opportunities for rivals.
The third largest stablecoin is Binance USD, which has seen its market share increase by 7.5x over the past few years. There are currently 17.8 billion BUSD in circulation, giving it a market share of 11.5%. The decentralized DAI stablecoin ranks fourth with 6.4 billion in circulation and a share of 4.2%.
The demise of the Terra ecosystem has inspired other imitators like Tron’s USDD, but it is still trading below its peg and never really gained traction.
Ave unveils GHO stablecoin
The latest crypto platform to unveil a new stablecoin is DeFi lending protocol Aave. On July 7, a proposal for a new dollar-pegged GHO stablecoin was posted on the Aave Governance Forum.
Like Maker’s DAI, it will be backed by collateral from users on the platform, which will be held to hold the stablecoin.
The new offering enters a crowded stablecoin market consisting of at least 85 different fiat-pegged tokens.
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