USDT Takes Advantage of Rival Stablecoins’ Struggling Market Caps by Adding over $5 Billion in a Week
Tether, the largest stablecoin in the cryptocurrency market, has taken advantage of the decline in its competitors’ market capitalization and has increased its total supply by $5 billion in the last seven days. The move has propelled the USDT’s market cap to $77.6 billion, representing a 10% increase in the last 30 days and a dominant 58% market share of the stablecoin industry.
This significant surge in the supply of USDT comes at a time when the competition in the stablecoin market is becoming increasingly fierce. Both BUSD and USDC have faced significant challenges, with BUSD dropping out of the top 10 in market capitalization and being banned by the US government from issuing new coins. Meanwhile, USDC has faced issues with asset backing and experienced a significant depeg, leading many investors to turn away from it.
In contrast, Tether has become a “safe haven” for investors, as it has been audited by BDO and has reserves that exceed $960 million, providing a sense of security for those who hold it.
The CEO of Binance, Changpeng Zhao, has also commented on the recent stablecoin market developments, noting that BUSD, the most fiat-backed stablecoin, has been forced to wind down, while USDC is also shrinking in market cap due to bank closures.
#BUSD, the most fiat-backed stablecoin, audited by big audit firms, regulated by the NYDFS, was forced to wind down (no new minting).
USDC is shrinking in market cap too due to bank closures.
USDT is growing. pic.twitter.com/q5OYQdpAtW
— CZ 🔶 Binance (@cz_binance) March 21, 2023
In response to these market developments, Binance has taken steps to distance itself from BUSD by converting its entire SAFU insurance fund from BUSD to USDT and TUSD. This move confirms Binance’s separation from BUSD and its alignment with the growing dominance of USDT in the stablecoin market.
In summary, Tether’s aggressive minting of USDT has enabled it to increase its market share significantly, even in the face of fierce competition and challenges faced by its competitors. As the cryptocurrency market continues to evolve, it remains to be seen how Tether’s dominance will continue to shape the stablecoin landscape in the future.
- Tether USDT Market Cap Hits $75 Billion, Dominating Stablecoin Market Share At 56.4%
- The Stablecoin War: USDC Vs. USDT – Who Will Come Out On Top?