Stablecoin USDT from Tether maintains leadership and grows in volume despite criticism and regulatory attention. Crypto Upvotes expert review

Tether is preparing to release its Q1 earnings report. USDT’s market capitalization reached $85 billion and recovered to its all-time high before the collapse of the Terra ecosystem in May 2022.

Since the beginning of the year, the company has issued $15 billion in new USDT. And stablecoin’s market share has grown another 15%. This growth was partly due to the fact that its closest competitors, Circle’s USD Coin (USDC) and Paxos’ BUSD, were struggling. The former suffered after the collapse of Sillicon Valley Bank. The second was banned by U.S. regulators. The outflow of funds from both stablecoins was in the billions of dollars. And investors probably switched from them to USDT. Which proved to be a more “stable” asset in the period of turbulence in the markets.

According to Blockworks Research, Tether has a 63% market share. Which is the highest in the last two years.

Last week, the company issued another 1 billion USDT, though they have yet to go into circulation. According to Tether’s CTO Paolo Ardoino, this batch of USDT will be used for further USDT issuance requests and inter-network conversions. Tether has a long history of issuing USDT before funds are actually received into accounts. Stablecoin is issued in large volumes at once. And the inclusion of coins in circulation is done as requests are received from users or exchanges.

USDT is issued on 13 blockchains, including Solana, Algorand, BNB Chain or Polygon in addition to Ethereum. There are 35 billion tokens issued on Ethereum. But the largest amount of Stablecoin is on the Tron network – 45 billion USDT. It is USDT in TRC20 standard token format that has become the most popular “stablecoin” due to lower commissions and transaction processing speeds compared to other networks.

Geographical advantage of USDT

Tether is registered in the British Virgin Islands, while the issuers of the other “stablecoins” from the first three are registered in the United States. The approach to regulating stablecoins is particularly acute on the agenda of U.S. lawmakers.

Last week, USDT was discussed at a House Financial Services Committee hearing in Congress. Where the main topic was the lack of federal regulations for stablecoin issuers in the US. Representatives from the local crypto business also took part in the hearing. And including, chief issuer strategist behind USDC Circle Dante Diparte. As well as Austin Campbell, former chief risk officer at Paxos, which previously issued BUSD.

Explaining the dominant position of USDT, the invited experts referred to the “advantage of the first project as a stablecoin” Tether. But they also cited the fact that the issuer is registered outside the U.S. among the main advantages.

Speaking to Bloomberg reporters, Henry Elder, head of the American fund Wave Digital Assets, told DeFi. About the fact that among large investors there is a mass shift from USDC to other, less U.S.-oriented stablecoins. And this will continue as long as the United States remains “irrationally hostile” to cryptocurrencies in general and to Stablecoins in particular.

New players in the market of stablecoins are expected

Kai Sheffield, head of cryptocurrency at Visa, said that the company “has an ambitious roadmap for cryptocurrency products”. In doing so, he published a link to a job page for developers. According to him, the introduction of payments in Stablecoin is what the finance company intends to focus on.

Despite the obvious dominance of USDT, the landscape of the “stablecoin” market is changing. The Binance exchange has refocused on the little-known TrueUSD (TUSD) token after it banned BUSD issuance until this year. The leading platform canceled all zero trading fees. But made an exception for Stablecoin TUSD. The token now represents the largest asset by trading volume on centralized exchanges, paired with Bitcoin.

Analysts suggest that TUSD, which has a 9% share of total trading volume on centralized crypto exchanges. In the coming months, it could take the second place in this indicator after Tether.

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On weekly timeframe level the price action of $USDT DOMINANCE is successfully broke down its Horizontal Support level and filled out its FVG gap level which is marked between the 5.23% - 4.94% level.The price action can show us the short term bounce back level before further downwards level #Write2Earn $usdt #TrendingTopic #MarketIndicators #USDTdominance

Tether, the largest stablecoin in the cryptocurrency market, has taken advantage of the decline in its competitors’ market capitalization and has increased its total supply by $5 billion in the last seven days. The move has propelled the USDT’s market cap to $77.6 billion, representing a 10% increase in the last 30 days and a dominant 58% market share of the stablecoin industry.

This significant surge in the supply of USDT comes at a time when the competition in the stablecoin market is becoming increasingly fierce. Both BUSD and USDC have faced significant challenges, with BUSD dropping out of the top 10 in market capitalization and being banned by the US government from issuing new coins. Meanwhile, USDC has faced issues with asset backing and experienced a significant depeg, leading many investors to turn away from it.

In contrast, Tether has become a “safe haven” for investors, as it has been audited by BDO and has reserves that exceed $960 million, providing a sense of security for those who hold it.

The CEO of Binance, Changpeng Zhao, has also commented on the recent stablecoin market developments, noting that BUSD, the most fiat-backed stablecoin, has been forced to wind down, while USDC is also shrinking in market cap due to bank closures.

In response to these market developments, Binance has taken steps to distance itself from BUSD by converting its entire SAFU insurance fund from BUSD to USDT and TUSD. This move confirms Binance’s separation from BUSD and its alignment with the growing dominance of USDT in the stablecoin market.

In summary, Tether’s aggressive minting of USDT has enabled it to increase its market share significantly, even in the face of fierce competition and challenges faced by its competitors. As the cryptocurrency market continues to evolve, it remains to be seen how Tether’s dominance will continue to shape the stablecoin landscape in the future.

#Tether #USDT #USDTdominance #USDC #azcoinnews

This article was republished from azcoinnews.com

The stablecoin market has been experiencing significant changes, with Tether (USDT) taking the lead while USD Coin (USDC) struggles to regain market confidence.

According to CoinGecko, USDC experienced a net outflow of $10 billion in the past 10 days, prompting a decline in its market cap from $43 billion to $33 billion. Circle, the operator of USDC, announced that the crisis was due to a liquidity problem in Silicon Valley banks, which held $3.3 billion of the coin’s reserves.

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Despite Circle’s reassurances that USDC is backed by short-term Treasuries and deposits in various US banks, it will be challenging to regain market trust. Moreover, a recent report from digital asset broker Enigma Securities suggested that while USDC may have survived the crisis, it’s unclear whether it will ultimately win the war.

Meanwhile, Tether’s market share has surged to 60%, with a market capitalization of $79.5 billion. The coin’s value remained stable during the banking crisis, which helped boost its popularity among investors. The decline of third-ranked stablecoin Binance USD (BUSD) also contributed to Tether’s rise to the top spot, with BUSD’s supply falling below $8 billion from $16 billion in early February.

TUSD, highlighted by Binance as an alternative to BUSD, rose from less than $1 billion to $2 billion, rising to the fifth spot. Circle CEO Jeremy Allaire expressed irony over the fact that USDC, which is known for integrating US banking and regulation, is now considered “unsafe,” while Tether lacks banking and risk exposure information.

Paolo Ardoino, Tether’s Chief Technology Officer, expressed confidence in USDT’s excess reserves, which amount to $1.6 billion, and the coin’s profitability, with $700 million in recorded profits in the first quarter of 2023.

In conclusion, the stablecoin market is in flux, with Tether leading the way while USDC struggles to regain market trust. It remains to be seen how the stablecoin market will evolve in the coming months, but for now, Tether is the undisputed leader.

#USDT #USDTdominance #USDC #Stablecoins #azcoinnews

This article was republished from azcoinnews.com