Tether is responsible for over 90% of all stablecoin volume…
by Manoj Sharma for CNR
Stablecoins have served as a bridge in the world of crypto, between traditional market and digital currencies. It is why their popularity has been steadily increasing since their emergence. Of all the current stablecoins, Tether is the one that appears to be attracting the most attention, and the lion’s share of custom. In addition to being a pair as famous for price determination as Bitcoin, the coin is widely used to ‘freeze’ funds.
In a recent study published by Blockchain.com, formerly known as Blockchain.info, it’s perhaps little surprise then that Tether has come out as a dominating stablecoin in the crypto market, in spite of accusations leveled in its direction over its transparency.
“Tether is the second most actively traded cryptocurrency, equal to approximately 60% of BTC daily trading volume”, says the report.
“Earlier this year Tether entered the top-10 crypto asset rankings by market value, and it currently comprises 93% of the total market value of all stablecoins. Even with the success of new entrants like TrueUSD in gaining listings on major exchanges, Tether continues to dominate and commands approximately 98-99% of all stablecoin trading volume.”
The important point to note is that the value of stablecoins, unlike other cryptos, doesn’t lie much in user confidence, as they represent a token backed by a verifiable value or physical goods.
Despite the dominance of USDT, the study details that the level of transparency of Tether is “low”, however; its main strength lies in the high level of adoption by prominent exchanges around the globe.
Currently, Tether is ranked eighth in the crypto world market cap with total capitalisation of over 2.8 billion dollars. The nearest Fiat-backed stablecoin is True USD that has ranked 65th with 103 million dollars capitalisation.