Amid Shrinking Treasury Size, Tether (USDT) Continues To Dominant The Stablecoin Market

tether-usdt


Tether (USDT) is the first ever stablecoin in the industry. Over time, there has been a lot of controversy surrounding Tether. New stablecoins have been created since then but statistics from CryptoCompare show that Tether is still the dominant stablecoin in the market. A study that was recently conducted by the cryptocurrency market data provider, showed that Tether still represents the majority of the trading volume. As at December 2018, USDT accounted for up to 65% of the volume. This shows that it increased by 16.5% since November.


Tether (USDT) Continues To Dominate The Global Stablecoin Market

The USDT to PAX trading volume have seen a tremendous increase by 70% from November to December 2018. This means that PAX present a strong competition for Tether. Regarding the dominant position of stablecoins in Bitcoin trading, both coins made inroads. In October 2018, USDT had 100% of the stablecoin market share. Shortly after, it went to 98%. PAX and other stablecoins have been unable to kick USDT out of the first position irrespective of their controversial nature of Tether.


Tether (USDT) Price Today – USDT / USD
Name Price24H (%)
Bitcoin (BTC)
$3,965.59
1.02%
Tether (USDT)
$1.00
0.09%


Following many controversial issues regarding the USDT coin, Tether had to publish a letter it received from Deltec Bank as evidence of its USD reserves. During this period, many exchanges started adding other stablecoins in a bid to slowly move away from Tether (USDT). Binance, the largest cryptocurrency exchange per market capitalization, announced that it would be adding a basket of stablecoins to replace Tether (USDT).


Tether Treasury Balance Shrinks


Even if the stablecoin continues to dominate the market, there have been growing concerns about the rate at wish the Tether Treasury is shrinking. On a daily basis, large withdrawals are being recorded. Right now, the Treasury holds about 493 million USDT. One of the largest transactions was about 14,985,000 USDT. It moved from the Treasury into an intermediary address and was subsequently sent to Kraken. This was the first of many similar transactions that occurred in recent weeks. It’s not clear why these transactions are occurring but they are not affecting the dominance of the stable coin.


The Tether Treasury had more than 750 million USDT tokens in October 2017. This was shortly after the liquidity of the stablecoin reduced dramatically. However, months after, Bitfinex injected a significant percentage into the system.


Tether (USDT) Price Analysis


At the time of writing, Tether (USDT) was trading in red at $1.01. This shows that it is down by 0.03% against the USD and down by 0.08% against Bitcoin. The trading volume over a 24 hour period is $2,044,490,249 and the market capitalization is $3,582,890,483.


Do you thin PAX stands a chance against Tether (USDT) in the fight for supremacy?

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