I just discovered something interesting about Tether’s USDT losing its control over the market, let me put it in simple terms for you.
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Tether’s USDT used to be the kingpin of all stablecoins worldwide. But do you know what? It is now losing prominence particularly on centralized exchanges such as Binance. Why may you ask? It is because there are some other stablecoins like First Digital’s FDUSD and Circle’s USDC which are giving it a run for its money.
Now let us dive into numbers here; Tether’s USDT still enjoys high trading volumes, to the tune of $3.6 trillion! Yes you heard that right but here comes the shocker – its market share on centralized exchanges has dropped by 13% from 82% down to 69%. This is huge my friend!
However, it is not just tether that is losing ground. Other stablecoins are also increasing their effort. For instance, USDC has seen a surge in its market share from below one percent of the market in 2020 to 11% as at now. This is impressive growth if you ask me.
And let us not forget Ethena’s USDe; the new kid on the block had a moment of glory with an airdrop of Ethena’s ENA token but has been rocky since then.
This is where it starts getting tricky. The United States plans on introducing laws which could squeeze some types of stablecoins out of existence; this might spell doom for algorithmic stablecoins if they are banned altogether too.
So, what do I think about all of this?
Well, I believe it shows that the market for stablecoins is growing. More people are getting into the game and that’s great news for us users because we’ll have more options to choose from and better deals.
However (and it’s a big however), we should be careful with regulatory changes. They have the potential to turn everything upside down – if they decide to ban or limit certain stablecoins, it could not only affect our trading but also make our investments less safe.
Now what’s the bottom line here? My friends, let me tell you that Tether might lose its USDT crown soon but that doesn’t mean it will be over for them. There are other stable coins out there trying their best to take the number one position so nobody knows what lies ahead in future.
For now, keep yourself updated as much as possible and trade wisely!
Posted Using InLeo Alpha