USDT is the largest stablecoin in the world, but ...
6/19/2022, 12:05 PM
The loss of market share by Tether (USDT) is a cause for concern among investors.
The stablecoin giant has lost significant market share amid a slew of market corrections. Tether’s Losing Market Share Tether currently sits on a $68 billion market cap, the lowest since October last year, down from the recently established all-time high of $83 billion. Since then, the stablecoin underwent a cascade of repeated declines. According to the data from CoinGecko, it freshly shed around $4 billion since June 14 alone.
Terra UST’s collapse pushed market players to seek sanctuary in other digital assets that maintain a one-to-one peg with the USD. As a result, the ensuing market contagion drove crypto and stablecoins to wobble, during which USDT briefly lost its dollar parity as it plunged to 95 cents. While it managed to re-peg quickly, the deathly spiral resulted in many investors ditching the stablecoin giant for its rival – USDC, a top contender.
Upon gauging further, it was found that, unlike the falling market cap of USDT, Circle’s flagship stablecoin has continued to follow an upward trajectory. After topping out in the first week of March, USDC’s market cap quickly bounced back in mid-May. As reported earlier, it even went on to become the stablecoin of choice on the Ethereum blockchain.
The stablecoin giant has lost significant market share amid a slew of market corrections. Tether’s Losing Market Share Tether currently sits on a $68 billion market cap, the lowest since October last year, down from the recently established all-time high of $83 billion. Since then, the stablecoin underwent a cascade of repeated declines. According to the data from CoinGecko, it freshly shed around $4 billion since June 14 alone.
Terra UST’s collapse pushed market players to seek sanctuary in other digital assets that maintain a one-to-one peg with the USD. As a result, the ensuing market contagion drove crypto and stablecoins to wobble, during which USDT briefly lost its dollar parity as it plunged to 95 cents. While it managed to re-peg quickly, the deathly spiral resulted in many investors ditching the stablecoin giant for its rival – USDC, a top contender.
Upon gauging further, it was found that, unlike the falling market cap of USDT, Circle’s flagship stablecoin has continued to follow an upward trajectory. After topping out in the first week of March, USDC’s market cap quickly bounced back in mid-May. As reported earlier, it even went on to become the stablecoin of choice on the Ethereum blockchain.