Tether (USDT) is gaining market share as the $136 billion stablecoin market is rocked by the Binance USD issue.
According to CoinGecko data, USDT’s share exceeded 54% as of March 6, the highest level since late November 2021 after the bull market peaked.
The increase in share is due to a decrease in share of rival Binance USD (BUSD). After Paxos, the issuer of BUSD, announced in February that it would stop issuing new issuances at the request of the New York State Department of Financial Services (NYDFS), BUSD’s market capitalization (distribution value) fell from $16 billion to $9 billion. decreased rapidly below.
Meanwhile, USDT’s market capitalization has increased by about $5.3 billion since the beginning of the year to $71.6 billion, of which $3 billion has increased since mid-February. Competitor stablecoin USD Coin (USDC) has also increased by about $3 billion since Paxos’ announcement, but its market capitalization has fallen slightly since the beginning of the year to $44 billion.
Existence that supports the crypto asset economy
Stablecoins have become the backbone of the crypto economy in recent years, with a market capitalization of $188 billion in May 2022. It plays a role in facilitating trading on cryptocurrency exchanges and trading between fiat currency and cryptocurrency.
USDT issuer Tether has established its position in the face of opaque reporting on the reserves behind the value of USDT and intense scrutiny of internal trading.
The Wall Street Journal reported last week that Tether used bank accounts opened based on falsified documents in 2018.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Tether’s USDT Stablecoin Market Share Rises to Highest Level in 15 Months