In the stablecoin market, Tether has been on the top for the past three years. The reason behind this dominance is that there are around 27 billion USDT in circulation, at the moment. However, according to the latest data from CoinMetrics, it is revealed that Tether’s market dominance has dropped below 75%. This is the biggest drop for Tether ever since it came into existence. Analysts believe that there should be more stablecoin options in the market, and one should not completely rely on one centralized provider.
$USDT market dominance in stablecoins is below 75% for the first time ever
— CoinMetrics.io (@coinmetrics) January 31, 2021
Circle’s USDC Climbs by 15% as Tether Market Dominance Decreases
Tether is not the only stablecoin as one of its top rivals is Circle’s USDC. As Tether’s market dominance decreases, USDC’s market share increases by around 15%. There are around 5.9 billion USDC in circulation as recorded by Cryptoknowmics.
It is also revealed that the integration of CirclePay and USDC into the trading app by Blockfolio, will ultimately increase the adoption of USDC. If compared with the same time last year, USDT market capitalization and supply has increased by a total of 520%. However, on the other hand, USDC supply has increased by 1,225% over the past one year. USDC’s usage in the DeFi sector is growing impressively which is indicating that Tether’s market dominance might decrease further.
Tether Rivals Showing Huge Growth
Not only USDC, but there are also other stablecoins showing impressive growth. DAI is the third-largest stablecoin and is an ultimate rival of Tether, after USDC. Over the past year, Dai has gone through huge success as there has been a growth of 1400% and now there are around 1.6 billion DAI in circulation. As these stablecoins are showing impressive growth, it is believed that Tether’s market dominance will be affected even more.