Key facts:
Since 2020 Tether’s dominance in the stablecoin market has fallen from 80% to 45%.
USDC is the main competitor, with a dominance of 25% of the market.
Tether (USDT) maintains its place as the world’s leading stablecoin. However, a marked growth of new stablecoins, fueled by new cryptocurrency networks, has caused it to lose ground in an ecosystem that already exceeds $180 billion in assets.
According to graphics from The Block portal, USDT’s dominance within stablecoins has been considerably reduced, after other, slightly smaller competitors entered the game. Among them are USD Coin (USDC), Binance USD (BUSD), and TerraUSD (UST). these last three They have just under 10% of the market each.while USDC owns more than 25%.
On the USD 180 billion of capitalization that the stablecoin market currently has, Tether has more than USD 80 billion, with a growth of just 5% so far in 2022. Its closest competitor is USDC with USD 44 billion, representing a growth of 15% in the same period.
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However, one of the fastest growing in this market has been Terra USD (UST). This stablecoin has a capitalization of USD 17 billion and its growth so far in 2022 has been more than 70%. As CriptoNoticias reported yesterday, it even outperformed the Binance exchange stablecoin, BUSD.
UST is an algorithmic stablecoin that maintains its peg to the US dollar by issuing or burning the cryptocurrency terra (LUNA). The foundation that develops UST has purchased the equivalent of more than $1.7 billion in bitcoin which, if needed, could be used as backing for the stablecoin.
Stablecoins, a little diversified market
The stablecoin market currently has little diversity, since there are only 5 cryptocurrencies that dominate this ecosystem (USDT, USDC, DAI, UST, BUSD) accumulating more than 95% of the capitalization.
As The Block chart shows, there are only 10 other stablecoins with sizeable market caps. If you add them all, they barely reach 5% of the total market share, and their level has been in decline since the beginning of the year, when they were above 6.1%.