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Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research

  • Alex Morris
    📊‍ Infographics

    Tether remains at the top of its game, but there are multiple stablecoins that could challenge its dominance in the nearest future


Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research
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A new DataLight study shows that Tether (USDT) remains the biggest dollar-pegged coin out there. However, its dominance has recently hit a brand-new low, with other stablecoins challenging its first place.        

The crown is slipping

Tether, which occupied a whopping 99.75 percent of the stablecoin market at the beginning of 2018, has been gradually losing its hegemony throughout the year. On Dec. 23, its dominance recorded a new low at 71.45 percent. Circle’s USDC is in second place with 8.75 percent, while TrueUSD (TUSD) takes third place with 7.94 percent. Notably, Dai (DAI), Tether’s long-term challenger, is lagging behind other upstarts.     
Overall, there are more than 57 stablecoins in the mushrooming sector (in various stages of development).

Stablecoin wars

Tether’s shrinking market share is primarily attributed to the fact that this niche is becoming more and more competitive, and each new stablecoin fights tooth and nail for its place in the sun. Last year, digital coins pegged to fiat currencies became one of the most recent trends in the industry, and crypto unicorns such as Gemini and Circle have stepped up their game by presenting their own stablecoins.

Recently, Paxos Standard and Gemini were accused of manufacturing arbitrage opportunities to streamline the adoption of their coins.


Cover image via u.today
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Institutional Interest in Bitcoin Continues to Grow: Report

  • Alex Morris
    📊‍ Infographics

    Institutional Bitcoin trading volumes have been on the rise since the beginning of April, but there is only one winner in this game
     


Institutional Interest in Bitcoin Continues to Grow: Report
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According to a new study published by Blockchain research firm Diar, institutional Bitcoin trading volumes are growing for the fourth consecutive month. The fact that the number of CME futures contracts skyrocketed since the beginning of April is the icing on the cake.

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CME’s dominance

 As reported by U.Today, CME Bitcoin futures saw their daily trading volume increase by a whopping 950 percent with 22,542 contracts on Apr. 4. In fact, the sudden rise in Bitcoin price was linked to the expiration of CME futures.  

So far, that level of interest remained steady with 11,873 contracts traded on Apr. 11.


Institutional Interest in Bitcoin Continues to Grow: Report

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The only winner

With CBOE pulling the plug on Bitcoin futures due to its inability to compete with its Chicago-based rival CME, there is a clear winner in this race. While Diar calls CBOE ‘the biggest loser’, Grayscale's Bitcoin Investment Trust (GBTC) is not exactly on the winning side, either. It now accounts for 24 percent of the market, lagging behind CME (a far cry from its 50 percent market share back in January 2018).

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New heights

The dominance of institutional products has been steadily rising since January. As of April, institutional money is responsible for 19 percent of the total Bitcoin trading volume (almost 8 percent more than during the market peak in January 2018). However, it has yet to match its 24 percent market share that was recorded in July.

Cover image via u.today
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