Tether (UDST) was the king of the stablecoins until just some days ago but it looks like things are changing a lot recently. After the currency broke its peg with the USD and was valued at less than $1 USD, a lot of people have been moving to other cryptos and the Gemini Dollar is the biggest winner of the market right now.
Many exchanges like Bibox, the largest exchange in the crypto market by volume, according to CoinMarketcap, saw a lot of its trading (96%, in this case) be made in Gemini Dollar (GUSD). Since the start of the Tether troubles, the volume of GUSD being traded on the platform almost doubled.
USDT is quickly being abandoned in favor of GUSD as it has lost 70% of its volume in Bibox, the example which we are using. The more the troubles continue, the less incentive the investors have to invest in the token at all.
However, the end of Tether is not yet confirmed as the volumes of the Gemini Dollar are still lower, mostly because the token was only launched a month ago. This means that UDST is still dominant and it can maintain its position with some effort. The trends are relevant, though, as you can see that Tether has fallen from its high of $50 million USD while GUSD has risen to $2 million USD.
Part of the reason why the volume of the Gemini Dollar is so low is mostly that only six exchanges actually have trading pairs with GUSD at the moment, so the market will likely expand a lot in the future. From these exchanges, only Bibox, OKEx and HitBTC are having a 24-hour volume higher than $100,000 USD and OKEx has started to trade the tokens since yesterday.
Tether’s Position Is In Dispute
There is simply no way to deny that the strong position that Tether has at the moment is being disputed now. The company basically had all the market for itself for a long time and now the Gemini Dollar is proving to be a very strong alternative.
Other companies such as Circle’s USD Coin (USDC), Paxos Standard (PAX) and TrueUSD (TUSD) are all aiming to get Tether’s share of the market. As soon as OKEx and FCoin decided to list some of these tokens, the race has started and now other companies will also support them.
Bitforex will list Gemini Dollar, ZB.com will list PAX, Bit-Z will list all the four tokens and BCEX has announced GUSD and PAX trading pairs.
It looks like the market will get more crowded than ever now as these exchanges are struggling to take Tether’s place and Tether is fighting for its existence.
Some exchanges have already chosen their sides, as DigiFinex, for instance, has affirmed that it would delist Tether in order to list TrueUSD instead.
Will Tether survive? The current trend might make it seem like it will not, but it simply too early to tell. One thing is certain: Tether will pay a hefty price its lack of transparency, which, once more, appears to be important in the crypto market.