Tether (USDT) Accounts For 98% Of Stablecoin Volume New Study Shows
Despite facing criticism over the years, the Tether (USDT) token has dominated the stablecoin market and is likely to continue doing so in the foreseeable future.
Tether still dominates stablecoin market
In a report called The State of Stablecoins, fintech company Blockchain says that Tether dominates this section of the cryptocurrency market by an estimated 98 percent of the total intraday trading volume.
More significantly, and an illustration of its grasp of the market, the coin’s market dominance accounts for about 60 percent of all Bitcoin daily trading volume.
As one of the first stablecoins to be released in 2014, Tether also leads the pack when it comes to total market value, with the dollar-backed coin’s total market capitalization accounting for approximately 93 percent of the entire stablecoin market cap.
Currently, According to CoinMarketCap, Tether has a market cap of $2.8 billion US dollars, with all fiat-pegged digital currencies having a combined total market capitalization of about $3 billion US dollars.
Data from market aggregator XBT.net shows that Tether currently ranks 8th in the world according to market valuation. Its nearest fiat-backed competitor is TrueUSD (TUSD), which ranks 65th with a market capitalization of about $103 million.
Tether on leading crypto exchanges
There is no doubt that questions will continue to linger concerning transparency and whether the total USDT in circulation is backed by an equal amount of US dollars in Tether’s reserves.
Tether’s reign as king of stablecoins also extends to its use on most leading crypto exchanges and trading platforms around the globe, where tether continues to enjoy its position as the most popular and accessible stablecoin.
According to the report, no other coin in this category is as dominant as Tether when it comes to its use as a liquidity tool.
“It is the most widely adopted stablecoin and is used by many industry-leading exchanges such as ShapeShift, Bittrex, Bitfinex, Binance, and Poloniex.”
Overall, there are over 350 different USDT pairs currently on the market listed in over 150 cryptocurrency exchanges.
Tether appears on six of the ten leading cryptocurrency exchanges, including Binance, the world’s leading crypto exchange by trading volume. TrueUSD, Tether’s biggest competitor, is listed on five of the top tier exchanges.
The growing interest in Stablecoins
There is a growing interest in stablecoins, Blockchain’s report shows. The research team indicated that there are currently 57 stablecoin projects, with a total of 23 already live and a further 34 still in their pre-launch phase.
The report also notes that investors are attracted to these coins’ potential.
Since they are less volatile compared to other cryptocurrencies, stablecoins can be leveraged in more ways, including crypto insurance, lending and even as a form of savings.
This aspect sees many entrepreneurs express optimism that stablecoins have a future in the crypto market and hence the increasing interest and the high number of projects.
A total of $350 million in venture funding has gone into these projects, with most of it coming from established funds such as Andreessen Horowitz, Google Ventures, Bain Capital, and LightSpeed.
Other high profile names in the industry betting on stablecoins include the Winklevoss twins and Goldman Sachs- backed Circle.