- User confidence in using USDT for trading has surpassed the competition.
- There is enough stablecoin buying power to buy BTC, but Ethereum’s supremacy is thriving.
Tether [USDT] has solidified its position as the most popular stablecoin among cryptocurrency users and traders. While there were doubts about the sustainability of this group of assets when the TerraUSD [UST]As the Terra blockchain’s dollar-pegged stablecoin collapsed, USDT showed resilience to weather the storm.
How many Worth 1.10.100 USDTs today?
No rivalry, just command
A year after the incident, the third-largest cryptocurrency by market cap added another 20% dominance, Glassnode revealed.
After the collapse of LUNA, USDT has grown its relative #Stablecoin market share by 20%, while the dominance of USDC, BUSD and DAI has decreased significantly.
🟢 USDT dominance: 65.9% (+20%)
🔵 USDC dominance: 24% (-13%)
🟡 BUSD Dominance: 4.6% (-7.2%)
🔴 DAI Dominance: 3.9%… pic.twitter.com/jT69zQiQxL— glassnode (@glassnode) May 12, 2023
From the tweet above, this growth has seen the overall lead extend to a 65.9% market share. Circle [USDC] came in second, but its year-over-year (YoY) overweight fell 13%. As expected, the order to stop issuance BinanceUSD [BUSD] its share affected. And this had helped in the adoption of TrueUSD [TUSD].
In addition, USDT’s growth has set it apart from the competition with an ever-widening gap in terms of circulating supply and market presence. At the time of writing, on-chain data showed that the asset accounted for $82.38 billion of a possible $125 billion in wider stablecoin circulation.
Therefore, it was not surprising that Tether was a incredibly profitable first quarter (Q1) as no other stablecoin asset was available for trading like USDT. However, it has not been a complete walkover for the stablecoin market compared to Bitcoin [BTC] And Ethereum [ETH].
Trials against the big two
At the time of writing, the Bitcoin Stablecoin Supply Ratio (SSR) was low at 4.08. The metric serves as a measure of the dynamics of supply and demand between dollar-backed assets and BTC.
Source: Glassnode
When the SSR is high, it means that the current stablecoin supply does not have the buying power to buy BTC. But since the average purchasing power was below average, it implied that there was enough supply of stablecoins to meet BTC demand.
With regard to Ethereum, the top five stablecoins were not exactly in charge. When comparing the dominance here, on-chain data considering the market cap of Ethereum and the total market value of stablecoin.
Realistic or not, here it is The market capitalization of TUSD in USDT terms
Market capitalization refers to the multiplication of an asset’s price by the maximum supply, whether it is circulating, locked or burned. It goes without saying that keeping track of this metric is important, especially since stablecoins host other blockchains.
At the time of writing, Ethereum’s market cap is over $215 billion. The best stablecoins, on the other hand, had a market cap of $125 billion. This means that Ethereum dominated, leaving stablecoin dominance negative.
Source: Glassnode