Tether (USDT) is losing its market share rapidly. According to data presented by financepr.com, the stablecoin ceded over half of its share in four years.
Financepr.com’s Edith Reads says, “Tether has shed over 50 percent of its 2018 market share to date. You could attribute that to the entry of other stablecoins jostling with it for market share.
These have resonated well with a considerable segment of what used to be USDTs customer base.”
The information is from a study that compared the dominance of 10 most significant stablecoins.
USDT’s 100% market share in January 2018 has since declined to 49 percent. The stablecoin had a market cap of $78 billion in the $159 billion capped sector as of 31st December 2021.
USD Coin (USDC) had the second-largest share of the market. The crypto asset supplied $43 billion or 28.23% of the asset class’s supply.
The Binance USD (BUSD) followed at the third spot, contributing roughly $14 billion, which translates to 9 percent of the stablecoin market.
Then came TerraUSD (UST), with a cap of $10 billion or 6% of the market. DAI followed this with a $9 billion cap.
Further, True USD (TUSD) and Paxos’ USDP placed sixth and seventh. They had market caps of roughly $1 billion and $900 million, respectively.
Neutrino (USDN), Fei USD (FEI), and Reserve Rights (RSR) closed the top ten in that order. Whereas USDN supplied digital assets worth $532 million, FEI and RSR provided $419 million and $381 million, respectively.
Besides the competition, USDT has suffered from China’s crypto purge. The country was the crypto’s largest market, where it was a popular on-ramping tool to crypto markets.
The prohibition of crypto activity stifled its supply in China. One theory that may explain that is that Chinese USDT holders redeemed their holding, returning a significant chunk of the asset to its treasury.