The market dominance of stablecoins pegged to the United States dollar has undergone some changes over the past year. While most of them are in a downward trend, Tether (USDT) has climbed back to its all-time high, data from CoinGecko shows.
In the past 12 months, Circle’s USD Coin (USDC) has seen its market share decline from 34.88% to 23.05% at the time of writing. Market participation of Binance USD (BUSD) plunged from 11.68% to 4.18% in the same period, while Dai’s (DAI) share of the crypto market was at 3.66%, down from 4.05% in May 2022.
Tether’s USDT is meanwhile gaining ground. The stablecoin’s market dominance currently sits at 65.89%, from 47.04% one year ago. Its market capitalization has soared to $83.1 billion, while USDC’s market cap has dropped from a peak of $55 billion to just $29 billion.
In a recent interview with Bloomberg, Circle CEO Jeremy Allaire blamed the crypto crackdown by the United States regulators for the stablecoin’s declining market capitalization. The current environment in the United States appears to be beneficial for Tether.
The U.S. banking crisis led to USDC depegging in March as reserves worth $3.3 billion were stuck at Silicon Valley Bank, one of three crypto-friendly banks shut down by regulators. Despite Circle’s assurances, the market quickly responded to the news, causing USDC to depeg from the dollar.
With the growing connection between the crypto space and traditional finance, stablecoins have become increasingly popular. A report released recently by the European Systemic Risk Board
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Author: Ana Paula Pereira
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