Tether’s Market Dominance Slips Amid Rising Competition
Kaiko Analytics, a market intelligence platform, has released a report indicating a decline in Tether's (USDT) stablecoin dominance due to the emergence of new competitors.
In the report titled “Tether Loses Market Share,” Kaiko Analytics notes that Tether’s market share over centralized exchanges has dropped by 13% YTD. This decline is attributed to the growing popularity of rival dollar-pegged digital assets like FDUSD and USDC.
The report highlights that USDT’s market share on CEXs has decreased from 82% to 69% YTD. This trend is partially attributed to increased competition from stablecoins like FDUSD, which benefit from Binance’s zero-fee promotions. USDC has also seen a rise in its market share, reflecting a growing preference for regulated alternatives. Currently, stablecoins issued in the US account for 10% of the overall stablecoin trade volume.
Among the top five stablecoins by market cap, only Circle’s USDC is regulated under state US money transmitter frameworks. However, its market share has increased from less than 1% in 2020 to 11% today.
READ MORE: Tether Reports Record-Breaking Q1 Profits and Treasury Holdings
Kaiko also suggests that other competitors such as Ethena (USDe), which offers unique yield opportunities, may contribute to Tether’s declining market dominance. Ethena’s USDe volume has grown significantly since its launch in February, although it has decreased from April’s peak of over $800 million following Ethena’s ENA airdrop.
Despite these challenges, Tether’s 2024 Attestation Report indicates a record-breaking $4.52 billion in profits during the first quarter of the year.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
