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Like the main cryptocurrencies, stablecoins have also been weakened by recent events. However, Tether is an exception. Its market capitalization has grown by 22% since the start of the year. With 83 billion stablecoins in circulation, Tether hits its May 2022 all-time high.
The stablecoin market is going through an upheaval
Stablecoins are a type of cryptocurrency designed to have consistent value. Increasingly popular within the cryptosphere, they are intended to maintain a stable value. Concretely, stablecoins are pegged to a fiduciary currency like the US dollar. Among the stablecoins pegged to the US dollar, the most popular are:
- Tether (USDT),
- USD Coin (USDC),
- Binance USD (BUSD).
While the stablecoin market has been booming for the past few years, it has contracted significantly over the past month. This downward trend is explained by the reduction of token supplies of several coins pegged to the dollar. This is the case of USD Coin whose supply decreased by 12.6%, against an 18.9% reduction for BUSD.
MakerDAO’s DAI also recorded a 9.8% drop in supply. As for Tron’s USDD, it fell by 1.3%.
Reverse of the situation: Tether does not seem to be affected by this market decline.
Tether is booming
Unlike the sparked stablecoins, Tether sees a supply increase of more than 22% since January. At the start of the year, its supply was valued at 66 billion Tether. Currently she has jumped to 80.93 billion. In addition, there is a growth of 6.3% in the last 30 days.
A month ago, USDT market share fell reached its highest level for 15 months by exceeding the 54% mark.
Tether (USDT) stands out today as world’s largest dollar-pegged stablecoin. It has survived a number of turmoil, to name only the fall of Terra in 2022 and the banking crises.
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My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it is a universe that interests me a lot. And the topics covered within the platform allow me to learn more. Singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The comments and opinions expressed in this article are the sole responsibility of their author, and should not be considered as investment advice. Do your own research before making any investment decision.