In 2021, the ERC20 USDC has grown by 1800 percent, eroding the USDT’s market share.
The rising rivalry, according to Tether’s CTO, is good for the stablecoin business.
Bitfinex-backed Since May 2021, Tether, the market’s largest stablecoin issuer, hasn’t created a single USDT on the Ethereum blockchain. USDT is now the third-largest cryptocurrency, with over 62 billion coins in circulation.
Tether has set a new record by minting no USDT on the Ethereum blockchain in the last 50 days. The ERC20 USDT created on the Ethereum blockchain has a total value of $28.9 billion. The high gas charge on the Ethereum network in May was one of the reasons for the suspension of USDT minting. The gas tax, on the other hand, has just been drastically reduced.
Ethereum’s dominance as the leading blockchain to host USDT has eroded due to the high gas charge. Tron beat Ethereum in April 2021 as the cryptocurrency with the most USDT coins. Tron currently holds more than half of all USDT in circulation, with 31.9 billion USDT produced on the blockchain.
Tether’s Market Share Is Being Eaten Away By Competitors
Several more USD-pegged stablecoins have recently acquired popularity. Despite being the most powerful player, Tether has been gradually losing ground to opponents.
Since the beginning of 2021, Circle’s USD Coin (USDC) has been gaining traction. USDC has a large demand among Defi customers, according to a Messari research released last month. USDC has had a phenomenal 1800 percent increase in the first six months of 2021. The total number of USDC coins in circulation has risen to 25.7 billion from 1.3 billion.
This illustrates that the quantity of USDC created on the Ethereum blockchain is rapidly closing the gap with the number of USDT minted. The difference between the two players is currently only 3 billion dollars. Analysts predict the supply of ERC20 USDC generated on Ethereum will soon surpass that of USDT. This will happen when Tether’s portion of Ethereum’s stablecoin supply falls below 50%.
Tether’s CTO applauds market competition.
While many competitors are chipping into USDT’s market share, Tether’s Chief Technology Officer (CTO) Paolo Ardoino is unconcerned about the situation. It’s been dubbed a “healthy development” by Ardoino! When asked if competitors are stealing Tether’s market cap, Ardoino responded, “Everyone steals from the king, not from the tiniest.” Obviously.. (but click-baiting is more important). In any industry, competition and diversification are essential for success.
He went on to say that Tether is proud of being the first to create this competitive stablecoin market. He believes that more industry players will contribute to improved market regulation.
‘Let everyone grow so that the sum of all voices becomes louder.’ is what will make the stablecoin sector far more stable in the long term, believe it or not. So there you have it. We’re not opposed to seeing progress. Everyone is welcome. All we worry about is that the game is fair and balanced.
The US Congress will examine regulating measures for stablecoin later today. The issue will be discussed by Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell. Today, US Treasury Secretary Janet Yellen meets with the SEC, Fed, and CFTC to discuss stablecoins Circle. USDC Chairman of the Federal Reserve Yellen, Janet Jerome USDT Powell Tether/n
