Block0 Crypto Market Research Study Shows Tether (USDT) is at Its Peak
Owing to Tether’s recent success, the number of stablecoin-oriented opportunities within today’s alt-asset market have increased quite exponentially. For example, it is worth noting that in less than 12 months, USDT grew and cemented its position as being one of the top altcoins in the market— thereby showcasing the general need for more stablecoins within the crypto sector.
However, with that being said, a new research study released by Swiss crypto fund Block0 points out that “Tether has reached its financial peak” and that new stablecoins could soon take over its coveted market position (as interest in this new digital offering continues to grow).
For those unaware of Tether’s background, the currency is governed and owned by Bitfinex. One quick look at its performance chart and we can see that Tether has witnessed some phenomenal growth over the past year or so. This is primarily due to the firm establishing direct partnerships with a host of centralised exchanges such as Binance, Okex and Huobi.
Even with all that, the recent uncertainty surrounding USDT has caused the investment community at large to lose confidence in the currency. As a result of this, various famous exchanges such as Binance, OKEX have started adding other stablecoin alternatives such as Paxos Standard, Gemini USD to their platforms.
In relation to the aforementioned study, Block0’s founder Manu Andorra said:
“We are observing a breaking point in the market for Tether. We have seen a prolonged period of uncertainty around Tether’s operations and with the introduction of competitors such as the Paxos Standard and TrueUSD, the market is moving towards the alternatives that put transparency at the forefront of their operations. Ultimately, all stablecoins are still experiments, and the market will benefit from a larger range of stablecoin solutions becoming available.”
Lastly, it is also worth noting that over the the past couple of weeks, the crypto space at large has been flooded with demand for new stablecoins ( with assets likeTrueUSD, Gemini USD and Paxos Standard trading at a premium across a number of exchanges).