Tether Market Cap Dominance Of Stablecoins Drops To 75% Despite Large BTC Transaction Amounts
Tether Market Cap Dominance In The Stablecoin Market Drops To 75%
Tether’s (USDT) dominance in the stablecoin market has dropped down to 75%. Almost a year ago, the digital currency had a market dominance of almost 100%. However, due to controversies related to the funds it manages and the growth of new stablecoins, Tether’s market dominance fell.
Is Tether the Best Stablecoin?
Tether was launched to the market with the intention to help users and investors hedge against volatility in the market. But a series of controversies have damaged the reputation of Tether over the last years. The digital asset has been accused of manipulation and it has also experienced some issues with its funds.
Due to this situation, new stablecoins were released to the market. Some of these digital assets are USD Coin (USDC), TrueUSD (TUSD), Paxos Standard (PAX), DAI (DAI) and Gemini USD (GUSD). All of them offer different features and have been embraced by several exchanges in the market.
In a recent Tweet uploaded by Ceteris Paribus, he shows that USDT remains the leader in the market, but these other digital assets are starting to grow. Tether has a market dominance of 75% followed by USDC with 9%, TUSD with 7%, PAX with 4%, DAI with 3% and finally GUSD with 1%.
— Ceteris Paribus (@ceterispar1bus) March 24, 2019
A the end of the last year, these new stablecoins were able to increase their presence in the market. Indeed, the Gemini USD is currently accepted on the Gemini exchange. USDC is traded in Coinbase, as well as DAI. There are other platforms that are also starting to look at these assets as well. Binance has also decided to add support to Paxos Standard and the USD Coin.
It is worth mentioning that USDT trading volume is also very high compared to other digital assets. Nonetheless, there have been some reports accusing exchanges of performing wash trading, and Tether could certainly be involved in these activities. Thus, metrics related to trading volumes for Tether might be flawed.
At the time of writing this article, Tether is the 8th largest digital asset in the market with a valuation of $2.03 billion. The digital asset has also been the second most traded in the market after Bitcoin (BTC) with $9.22 billion. The second stablecoin in terms of trading volume is Paxos Standard in the 22nd position with $56 million traded in the last 24 hours.