04 Oct 2021
Tether continuing to lose market share
The stablecoin market is gradually becoming less centralized as Tether’s competitors see explosive growth.
The total market cap of stablecoins has increased from $29 billion at the start of the year to $127 billion. Tether (USDT) has lost dominance as other stablecoins are increasing in popularity. It started the year with a market share of 75%, which has since fallen to 54%. USDT’s closest competitor, USDC, has grown more than 700% in 2021, while the third biggest stablecoin, BUSD, has increased 12,000%. These growth rates are massive compared to USDT’s 230%. Lately, lawmakers have become increasingly eager to regulate stablecoins. The crypto-friendly senator Cynthia Lummis stated that stablecoins must be backed 100% by cash and regularly audited. Stablecoins, and especially Tether’s balance sheet has been a source of concern in the crypto market. The crypto market should therefore welcome a less centralized stablecoin market, especially now when regulations are looming. With the explosive growth rates of alternative stablecoins, will USDT fall below 50% dominance within the end of 2021?