Tether (USDT) continues to dominate the stablecoin market, as the market has declined for 13 consecutive months, according to a recent report by CCData, a cryptocurrency data analysis company.
The report reveals that USDT’s market capitalization rose by 2.03% to $81.5 billion in April, close to the all-time high of $83.7 billion recorded in May last year. Its market share also increased for five consecutive months to 62.1%.
USDT’s dominance is also reflected in the trading volume, as it accounted for 79% of the combined stablecoin trading volume on centralized exchanges (CEX) in April. It also had the highest number of trading pairs at 2931. On the other hand, the overall stablecoin market declined by 1.08% to $131 billion, the lowest level since September 2021.
The stablecoin market faced a crisis in March when some stablecoins broke their dollar linkage due to the banking crisis. As a result, monthly trading volume plummeted by 13.6% to $775 billion. By the 23rd of this month, the stablecoin transaction volume was only $365 billion.
Despite the decline in the overall stablecoin market, the stablecoin race continues. Binance is pushing TUSD as an alternative to its deregulated stablecoin BUSD. The exchange is expanding its share of TUSD by applying zero fees to TUSD trading pairs of Bitcoin (BTC).
As of April 22nd, TUSD trading volume was $987 million, recording a record-high 15.9% share. It remains to be seen whether TUSD will be able to challenge USDT’s dominance in the stablecoin market.
Source: https://azcoinnews.com/usdts-market-share-continues-to-increase-as-stablecoin-market-hits-13-month-decline.html
