Tether (USDT) Maintains Strong Grip on Stablecoin Market, Surpasses $83 Billion Market Cap Record
While USDT is achieving new heights in terms of market capitalization, other stablecoins are facing challenges in maintaining their market dominance.
USDT has reached a new all-time high market capitalization, coinciding with difficulties faced by other stablecoin issuers due to regulatory measures. Binance CEO, Changpang Zhao, has also expressed this concern.
Binance CEO, Tether, shared on Twitter, “BUSD, a stablecoin regulated by NYDFS, has a cap of $23 billion and no new issuances. Currently, its market value stands at $5 billion.”
BUSD, a fully regulated stablecoin, was "capped" (no new minting) by NYDFS at $23b. Now at $5b market cap.
Since then, USDT has seen tremendous growth. https://t.co/KqBkDK71WS
— CZ 🔶 Binance (@cz_binance) June 1, 2023
USDC, the second largest stablecoin, has a market capitalization of over $50 billion, whereas USDT stands at $28.8 billion. Both stablecoins experienced a decline in market value following the peak in June 2022, attributed to the prolonged bear market.
However, USDT has made a strong recovery and now holds a greater market dominance, while USDC’s market capitalization has nearly halved.
The decline in market share of other stablecoins can be primarily attributed to increased regulatory scrutiny from United States regulators, which exacerbated the banking crisis.
Following the ban on re-issuing BUSD due to reported security breaches, the market capitalization of BUSD experienced a significant drop as users began converting their BUSD holdings into other stablecoins.
Also Read This Related: Tether Introduces “Tether Energy” for Environmentally Friendly Bitcoin Mining
USDC also faced a major crisis when Silicon Valley Bank, where the stablecoin issuer held around $3.3 billion in reserves, collapsed. This event triggered market panic and led to a deviation from the US dollar.
Although USDC was re-pegged to the US dollar the following day, the incident had a substantial impact on its market capitalization. Many people converted their USDC holdings to other stablecoins out of concern for a potential total collapse.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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