04 Oct 2021
Tether continuing to lose market shareThe 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?