The world’s largest stablecoin, Tether, has not printed a single new USDT on the Ethereum network for weeks, and its rivals are predictably capitalizing on this factor to increase their market cap. But this doesn’t seem to bother the stable currency’s CTO Paulo Ardoino, who believes the growth of other stablecoins will make the industry “much more solid in the long run.”
Data from various sources reveals that the last time USDT was issued on Etherum was May 31. However, since then the asset has not been minted on the network, which translates into a 50-day lull for the currency. As of now, the total value of all the USDT tokens generated on Ethereum is estimated to be $28.9 billion.
The sudden pause in Tether printing could be attributed to lower demand for the asset, which could be blamed on the skyrocketing fees on Ethereum. But the stablecoin is also issued on other blockchains such as Omni, Binance Smart Chain(BSC), and TRON, which overtook Ethereum as the leading network for USDT in April. Currently, TRON holds 31.9 billion USDT tokens out of the 62.3 tokens in circulation.
With Tether losing its dominance in the Ethereum ecosystem, opportunities are opening for other stablecoins to claim the prime status. The USD coin(USDC), in particular, has emerged as one of the strongest stable currencies despite the high gas costs.
To date, the USDC has recorded a stunning 1,800% growth in 2021, as its circulating supply surged from 1.3 billion to 25.7 billion. This amount is just 3 billion less than the total USDT on Ethereum.
The currency has seen significant interest from DeFi users and has even entered the TRON network recently. According to a Messari report released in June, Tether’s supply on Ethereum could plunge by 50% in the near future, increasing USDC’s odds of becoming the stablecoin market leader.
While USDT is on the verge of losing its grip on the stablecoin market, its CTO Paulo Ardoino is the least bit worried about the development. In fact, Ardoino opines that growth is a good sign for stable currencies and is only concerned that the competition should be “fair and equal.”
In a series of tweets published on July 17, Ardoino stated that diversification is necessary for the market and a major factor behind any industry’s success. He also noted that his team at Tether is proud that their creation has turned into a new competitive market segment. Ardoino also said that a wider representation of stablecoins could help with fairer regulations for the industry.