Tether Has Highest Level of Ownership Distribution Among Top Stablecoins: ConsenSys Report

Tue, 07/14/2020 - 19:33
Alex Dovbnya
Tether (USDT) has the lowest level of wealth inequality, but its whales are still insanely powerful
Cover image via stock.adobe.com

According to a recent report published by Ethereum-oriented software engineering company ConsenSys, Tether (USDT) has the highest level of wealth distribution among the leading stablecoins. 

The top 100 whales hold 46.5 percent of the coin’s total volume, with the largest Tether accounting for 6.6 percent of all tokens.

Ethereum-Issued Stablecoins Reached Their Peak in June, with Tether Seeing 140K Active Addresses: Report

Stablecoin whales

Since stablecoins are mostly used for trading, one would expect them to be more diversified than ordinary cryptocurrencies that investors hold in anticipation of price appreciation.  

This, however, is not the case. The top 100 Bitcoin holders, for instance, only hold 15 percent of all tokens (compared to Tether’s 47 percent).    

USD Coin (USDC), which is issued by the CENTRE Consortium formed by Coinbase and Circle, has the highest portion of whales who are responsible for 74.8 percent of all its whole supply. 

image by consensys.net

Decentralized lending procol Compound alone holds 22.8 percent of all USDC tokens. 

Blacklisted addresses

Stablecoins have been on a roll ever since the March market crash that sparked huge demand for fiat-backed cryptocurrencies that are not wont to volatile price moves.

As reported by U.Today, the ERC-20 version of Tether now dominates the whole Ethereum economy.

However, CENTRE’s recent decision to freeze $100,000 worth of USDC to cooperate with law enforcement justified the concerns of decentralization purists.

Leading stablecoin issuer Tether has also banned 39 Ether addresses.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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