USDT loses growth for major stablecoins.

Veny Cespedes West

https://img.particlenews.com/image.php?url=2nuk0g_0fTyZjad00
Flickr: Jernej Furman / Source: theblockcrypto.com / coinmarketcap.com

Tether (USDT) dominated the stablecoin market with more than 80% of the capitalization, but since 2020 it has been reducing its dominance.

Although Tether (USDT) maintains its place as the leading stablecoin, its growth has slowed due to the launch of new stablecoins, accompanied by new cryptocurrency blockchains in an ecosystem that exceeds USD 180B in assets. According to The Block portal, USDT's dominance within stablecoins has been reduced after other digital currencies entered the market.

USD Coin (USDC) is the main competitor with 25% of the market, followed by Binance USD (BUSD) and TerraUSD (UST), which have just under 10% of the market each.

https://img.particlenews.com/image.php?url=43odZq_0fTyZjad00
Source: The Block, Coin Metrics

Of the USD 180B capitalization currently held by the stablecoin market, Tether (USDT) has a quota of USD 80B with a growth of 5% in the first quarter of 2022. USDC, the second stable coin with the largest capitalization has a representation of USD 44B with a growth of 15% in the same period.

However, one of the fastest-growing competitors has been UST, with a growth of more than 70% so far in 2022, with a capitalization of USD 17B surpassing the stablecoin of the exchange, BUSD.

TerraUSD (UST) is a decentralized, algorithmic stablecoin on the Terra Blockchain. It maintains its parity with the US dollar. The foundation that develops UST intends to buy USD 10B in Bitcoin as a reserve for UST if necessary. There are also stablecoins, such as USDT or USDC, backed by fiat money in bank accounts and other traditional assets.

https://img.particlenews.com/image.php?url=0e6VgA_0fTyZjad00
Source: The Block, Coin Metrics

There are 10 other stablecoins with sizeable market capitalization. Between all of them, it barely reaches 5% of the total market share, and its level has decreased since the beginning of this year, as shown in The Block's graph.

Disclaimer: The information provided in this section does not represent investment advice.

Comments / 0

Published by

Hello, I'm Veny West, a journalist in the crypto world. I deliver unbiased news with valuable information about the world of web3. ¡Pura Vida! ₿ **No financial advisor**

N/A
245 followers

More from Veny Cespedes West

Comments / 0