Despite declining market share, USDT remains the top stablecoin
Even though USDT’s market share has been going down steadily throughout 2022, the stablecoin has stayed at the top.USDT is still the most popular stablecoin, and USDC is still the second most popular stablecoin. The latest regular report from Arcane Research says that USDT’s share of the stablecoin market has fallen to 45% this year. Check out how Bitcoin has a future, if you are planning to trade Bitcoin.
The supplier’s market share shows what percentage of the total market capitalization it makes up. When you add up the price of a cryptocurrency and the number of currently circulating coins, you get its “market capitalization.”
Large stablecoins are tied to the dollar, and their USD market capitalization shows how many payment services they offer. Since then, though, the coin’s market share has decreased by 4% over the months.
The statement says that the USDC had a solid last thought in 2014, which made some experts think that the safe would replace Tether at the top of the pyramid.
From the beginning of the year to the end of June, the currency’s value went up from 27% to 35%. The main reason for this growth was the failure of USD Earth (UST), which made banks switch to USD Coin because it was a safer and better-regulated stablecoin.
The cryptocurrency was at its best in July, when 37% of the market was made up of it. Since then, it has gone down, and now it’s only 33%. The total market capitalization of USDC has gone down by 5.5% in the last 30 days.
During the same time, the US Dollar Ticker went up by 1%. Since the USD is losing value, it’s unlikely it will be able to pass Tether by the end of this year if it stays the same. This year, Binance’s BUSD has done well and stayed the same. The risk is now 14%, up from 9% in January. This is an excellent example of something that has stayed the same and done well this year.
One bitcoin costs around $19,300. This is 1% more than it was a week ago. By market value, Tether is now the third largest cryptocurrency. Some economists, like one who works for the U.S. Federal Reserve, are starting to worry about this.
Eric Rosengren, in charge of the Boston Fed, said a month ago that tether could make the financial system less stable. Some investors think that losing faith in tether could be the “black swan” of cryptocurrencies. A “black swan” is a big surprise that happens in the market.
The problems with tether have a significant effect on the new field of cryptocurrencies. And economists are becoming more worried that it could affect markets other than digital currency.
How does it feel to be tied down?
Tether is a currency that you can use online. It works like bitcoin. If you look at the market’s total value, it is the third largest digital currency in the world. But it’s not like bitcoin or any other digital currency we have now.
Stablecoins include cryptocurrencies like Tether. These digital currencies are tied to real-world assets like the US dollar, so their value stays stable. The prices of most other cryptocurrencies change over time, but not this one. For example, the price of Bitcoin hit an all-time high of about $65,000 in April, but it has since dropped by about half of that amount.
Tether’s value in terms of the dollar stays the same. The price of Tether is usually equal to one dollar. Other cryptocurrencies have prices that change a lot, but not this one. This isn’t always the case; how the value of tether has changed in the past has shaken investors to their core.
When they want to buy crypto, crypto traders often use Tether instead of traditional currencies like the dollar. When the cryptocurrency market is volatile, they can find safety in a more stable asset.
Many banks choose not to do business with digital currency exchanges because there are a lot of risks. On the other hand, there are no rules about how to handle cryptocurrency. In times like these, people often use stablecoins.