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Recent data reveals that Tether (USDT) has significantly increased its dominance in the stablecoin market, while USD Coin (USDC) and other major stablecoins have experienced a decline in market share.
USDT Dominance Surges to 67.6%
According to Glassnode, an on-chain analytics firm, USDT's supply dominance—the percentage of its circulating supply relative to the top stablecoins—has continued to rise. The stablecoins analyzed include:
- Tether (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- Dai (DAI)
- TrueUSD (TUSD)
Since these assets are pegged to the US dollar, their market caps and circulating supplies can be directly compared.
Key Trends in Stablecoin Dominance
USDT’s Historical Position
- USDT has long been the dominant stablecoin but faced declining market share in 2021–2022.
- USDC gained traction during this period, nearly closing the gap with Tether at one point.
Recent Shifts in Market Dynamics
- USDC’s decline began amid FUD (Fear, Uncertainty, Doubt) surrounding the Silicon Valley Bank collapse, which led to panic redemptions and a temporary loss of its dollar peg.
- BUSD also saw a sharp drop in dominance due to regulatory pressures halting new minting, reducing its share to just 3.8%.
USDT’s Resurgence
- With USDC’s dominance falling to 23% and BUSD fading, USDT has reclaimed market share, reaching 67.6% dominance—its highest level since May 2021.
Bitcoin Price Update
As of the latest data:
- BTC is trading around $26,000, down 2% over the past week.
- The market has shown sideways movement with limited volatility.
👉 Explore real-time BTC price trends
FAQ Section
Why has USDT’s dominance increased?
USDT has benefited from declining confidence in competitors like USDC and BUSD, coupled with its established liquidity and market trust.
What caused USDC’s decline?
The Silicon Valley Bank crisis triggered panic redemptions, weakening USDC’s peg and reducing its market share.
Is BUSD still being minted?
No, BUSD issuance has halted due to regulatory actions, leading to a gradual decline in its circulating supply.
What does supply dominance indicate?
It reflects a stablecoin’s market share relative to other top stablecoins, signaling investor preference and liquidity strength.
How does USDT maintain stability?
Tether relies on reserves and market liquidity to uphold its peg, though transparency remains a topic of debate.
👉 Learn more about stablecoin mechanics
Final Thoughts
The stablecoin market is undergoing a significant reshuffling, with USDT solidifying its lead as competitors face regulatory and trust challenges. Meanwhile, Bitcoin’s price remains stagnant, reflecting broader market uncertainty.
For deeper insights into crypto trends, stay updated with our exclusive analysis.