The Growing Market Capitalization of Tether’s Stablecoin
The market capitalization of Tether’s stablecoin USDT has exceeded $90 billion, indicating a strong demand from investors and the increasing use of stablecoins in the digital economy. Currently, USDT holds about 70% of the stablecoin market, while competing coins are experiencing a decline in market capitalization.
Tether’s Dominance in Trading Volumes
Tether’s dominance is further highlighted by its trading volumes. Compared to USDC, USDT trading volumes are nine times higher. This suggests that these tokens serve different purposes in the market, according to Rob Hudik, a general partner at Dragonfly.
Preference for USDT and USDC
Traders outside regulated US/UK markets and emerging markets prefer using USDT, while American companies opt for USDC as their stablecoin of choice.
Changes in Stablecoin Rankings
In July 2023, Tether’s capitalization increased by 36%, while USDC’s market value dropped to a 5-month low of less than $27 billion. The delisting of BUSD from Binance caused it to lose ground to DAI and TrueUSD, impacting its previous ranking as the third stablecoin.
Growth in Stablecoin Sector
Analysts reported that in November 2023, the stablecoin sector experienced a capitalization growth of over 3%, reaching $124.05 billion. This upward trend marked the first sustained increase since April-May 2022. Additionally, not only did the capitalization increase, but the number of large holders also grew.
Hot Take: The Rise of Tether’s USDT
The market capitalization of Tether’s USDT stablecoin has surged to over $90 billion, demonstrating the strong demand and increasing use of stablecoins in the digital economy. With its dominance in trading volumes and preference among traders, USDT continues to solidify its position as the leading stablecoin. As other competing coins experience declining market capitalization, Tether’s growth remains significant. This trend reflects the evolving landscape of cryptocurrency and the growing importance of stablecoins in providing stability and liquidity to investors.
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