Stablecoin Market Dominance
USDT, the largest stablecoin, now accounts for almost 75% of the $160 billion stablecoin market, up from 55% two years ago. Its market cap has nearly doubled in the period, growing to $118.6 billion, making it the third-largest cryptocurrency overall.
Rivals Struggle as USDT Thrives
The No. 2 stablecoin, Circle's USDC, is less than a third the size of USDT. Competitors like BUSD have been ordered to shut down, while USDC was hit by the failure of a reserve partner during the U.S. regional banking crisis.
Stablecoins' Expanding Use Cases
Stablecoins are becoming increasingly popular for non-crypto activities in emerging regions, with uses ranging from saving in dollars to payments and cross-border transactions. Tether holds over $97 billion in U.S. Treasuries and repurchase agreements in its reserves.
Tether's Strong Network Effects
USDT users cite the token's network effects, user trust, liquidity, and track record as reasons for its popularity relative to other stablecoins. New entrants have yet to pose a serious challenge to the dominance of centralized issuers Tether and Circle.
Revenue from Reserve Assets
Tether earns roughly $400 million a month in revenue from yields on its reserve assets, managed by global financial services firm Cantor Fitzgerald.
The information provided in this article is for informational and educational purposes only, based on news and sources gathered from the internet. This content should not be considered as investment advice, financial guidance, or a suggestion to buy or sell any digital assets. Before making any financial decisions, we recommend consulting with a professional financial advisor and conducting your own research. The author and the blog are not responsible for any losses or damages that may arise from using this content.
Comments