Over 200 Million Dollars Worth Of Stablecoins Sidelined Ready To Enter The Crypto Market
Over 200 Million Dollars Worth Of Stablecoins Enter The Crypto Market
More than 200 million of stablecoins including Tether (USDT), USD Coin (USDC), and Paxos Standard (PAX) have entered into circulation in the last few days in the crypto market.
Stablecoins are certainly the talk and the latest trend in the crypto space. Initially, Tether has been the dominant stablecoin in the market. However, over the course of last year, a myriad of stablecoins such as USDC, Paxos, Gemini Dollar, has been launched that are now competing to take over Tether’s share.
Even banking giant JP Morgan has launched its own so-called stablecoin JPM Coin to settle payments.
Though Tether’s share in the market has taken a hit since then, it still maintains its dominant position.
“While other stablecoins are beginning to gather pace, their market share of stablecoin trading volumes remain minute. With few token trading pairs, Tether still dominates. In the case of Binance, for example, Tether volumes still account for 98% of the total stablecoins traded volume,” stated Diar’s report from mid-October, 2018.
While last month it reported that according to TradeBlock,
“While stable coins initially saw traction as a digital currency trading pair on exchanges, this appears to have lost some momentum as trading volumes fall and as the US dollar maintains its dominance as the top trading pair in bitcoin and altcoin transactions.”
Fresh Fiat Pegged Currency In Circulation
However, Tether is still subject to the speculations of affecting the market. Now apparently, 200 million of fresh USDT has entered into the market in the past 48 hours.
With a market cap of $2.2 billion, at the time of writing, there have been 2,195,136,488 USDT in circulation as per Coinmarketcap.
Apart from Tether, 4 million of USDC has been reportedly entered the market. There are currently 262,648,631 USDC in circulation. As for Paxos Standard, 109,594,623 PAX are into circulation.
While Tether has been regularly criticized for the lack of transparency, just recently, another stablecoin TrueUSD (TUSD) released the results of its full audit that stated each of TUSD coin is fully backed by one US Dollar. There are more than 200 million TUSD in circulation currently.
This money parked in pseudo fiat that is stablecoins according to crypto industry experts is just waiting to flow into Bitcoin and altcoins.