Tether’s (USDT) Market Share Declines
Despite USDT's market share decline in 2022, it's still the most popular stablecoin, with USDC coming in second place.
According to the latest weekly report from Arcane Research, USDT’s share of the stablecoin market has already fallen to 45% this year.
Market share refers to the percentage of the respective stablecoin in the total market capitalization. Market capitalization is calculated by multiplying the number of coins in circulation by the cryptocurrency’s price.
And since the underlying stablecoins are pegged to the dollar, their market cap in U.S. dollars is simply equal to the total supply in circulation. Here’s a chart showing how the share of the various stablecoins has changed so far in 2022:
As demonstrated in the above chart, USDT accounted for 49% of the total stablecoin market cap at the beginning of this year. However, since then, the currency has decreased its market share by 4%.
According to the report, many analysts believe that USDC could displace USDT in 2021 due to the network’s strong performance.
However, the coin has carried its momentum into this year, rising from 27% at the start to 35% in June. However, this rise was mainly due to the collapse of Terra USD (UST), which prompted investors to turn to USD Coin as it is regulated.
After peaking at 37% in July, the cryptocurrency has seen a slight decline that has brought its market share to just 33% today. In the last 30 days alone, USDC’s market cap has dropped by 5.5%.
In the same period, USDT saw a 1% increase. The fact that USD Coin has lost momentum means it is unlikely it will overtake Tether anytime soon.