New Reports Shows Tether’s Market Share Among Stablecoins Grows to 61%

Tether started the New Year with a $66.3 billion market cap. However, on the YTD scale, the project has undergone a 22% increase ballooning to $81 billion. CircleUSD has managed to move in the opposite direction as it has lost around 21% of the total market cap as the next stablecoin project.

The total market share of Tether stablecoins has increased by 61.5%. This number marks the highest position taking place for the next two years.

TerraUSD was shut down in May 2022 following the demise of BinanceUSD in February this year. Therefore the supply of these stablecoin projects undergoes a sharp increase in the market. Therefore, the CircleUSD project was struggling on account of regulatory concerns in the US territory.

It was affected by the fall of the SVB banking unit as it lost 8.25% of reserves held in the out-of-commission bank. Market growth has kept increasing consistently in the market place with Tether also going up at a consistent pace.

FTX Collapse also Affects the Reputation of Stablecoin

FTX exchange was able to send the whole cryptocurrency universe into a state of disarray. He mentioned that since that time things have improved significantly. The analyst noted that at present capital has grown several folds during this time.

He also talked about the biggest stablecoin project in the world namely BinanceUSD that went out of commission. At the same time, another major stablecoin project named Circle USD dropped to 88 cents after a sudden de-pegging event.

This crash happened in the context of the three small banks namely Signature, SVB, and Silvergate. Following the crash, US regulators issued a warranty to the banking sector about confirming bank deposits that covered the uninsured reserves as well. In this manner, the US government was able to retain financial stability and prevent any major panic from spreading in the markets.

In comparison to other stablecoin projects, Tether remains relatively stable over two years. Meanwhile, other stablecoins such as BUSD and TerraUSD de-pegged in the face of periods of economic uncertainty.

Meanwhile, the DAI token has managed to maintain its peg on account of the over-collateralization policy to offset crypto volatility. However, the project suffered in terms of scaling measures due to the over-collateralization measures that remained conservative.

During the last 4 months, CircleUSD and Tether are on a unique path carved for them individually for the last 4 months. In this manner, USDC was able to start the year with a market cap of $44.1 billion. On the other hand, the opening market cap for Tether was $66.2 billion and it is now looking at $ 81 billion with a rise of 22% in value.

The recent regulatory changes have presented new challenges for crypto entities in US territory. Meanwhile, Tether is also based out of Europe where regulatory clarity is more lenient. USDC is currently standing at 24.1% while BinanceUSD is down to 12% on the YTD front.

Stablecoin reserves on exchanges have reported a 45% outflow during the preceding quarter. Thus, a minimum amount of stablecoins are available on shelves on the exchanges since 2021.

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