Binance CEO highlights USDT growth amidst rival issues

Binance CEO, Changpeng Zhao, has highlighted the impressive growth of the USD-pegged stablecoin, USDT, amidst the ongoing issues faced by rival stablecoins. In a recent interview, he emphasized USDT’s resilience, stating that it has continued to maintain its peg to the US dollar, unlike some other stablecoins which have experienced price fluctuations. This stability has helped USDT’s adoption and growth, with its market cap increasing substantially in recent months. As the CEO of one of the largest cryptocurrency exchanges in the world, Zhao’s comments highlight the importance of stablecoins in the industry and the role they play in providing stability to traders amid volatile market conditions.

Tether’s USDT Stablecoin gaining momentum amidst rival issues, says Binance CEO

Binance CEO Changpeng “CZ” Zhao has highlighted the rise of Tether’s stablecoin, USDT, amidst the issues faced by its competitors. Zhao took to Twitter on March 21 to share how Binance USD (BUSD) had to halt mints, despite being regulated by New York authorities and audited by big firms. According to the CEO, BUSD is the most backed stablecoin with fiat currency.

In addition, he talked about recent bank issues, which have affected crypto-friendly banks like Signature Bank and Silicon Valley Bank, also affecting USDC. Zhao stated that “USDC is shrinking in market cap too due to bank closures.”

USDT reaches supply of almost $80 billion

As different issues plague rival stablecoins, USDT’s supply rose by more than 10% in the last 30 days to $76.97 billion, as per recent CryptoSlate data. For context, on-chain sleuth Lookonchain said that Tether had minted $5 billion USDT tokens on Tron and Ethereum blockchain networks in the past seven days. This coincided with a period when USDT’s supply reached a ten-month high and its market dominance rose to around 58%.

In the last 30 days, TrueUSD (TUSD) has also grown massively, enjoying significant adoption that has pushed its supply beyond 2 billion for the first time.

Binance switched its zero-fee Bitcoin trading strategy from BUSD to TUSD starting from March 22, citing its adoption by several users. The exchange also added that TUSD would be part of the Secure Asset Fund for Users (SAFU).

USDC and BUSD decline triggered by US-specific challenges

As per CryptoSlate data, USDC and BUSD’s supply declined by more than 15% and 38% in the last 30 days, respectively. Though the reasons could be different, U.S.-specific challenges could have incited the declines of these stablecoins.

BUSD’s decline happened due to regulatory actions against it, while the collapse of crypto-friendly institutions negatively affected confidence in USDC, resulting in its earlier depeg. Since these events, crypto investors have shown an increased preference for USDT and other stablecoins.

Lyn Alden, the founder of the Lyn Alden investment firm, pointed out that the U.S. authorities’ reluctance to “allow and formalize stablecoins domestically has increased market share for offshore stablecoins.”

In conclusion, the recent issues faced by some stablecoins, coupled with US-specific challenges, have given a boost to USDT and other offshore stablecoins. Investors are looking to park their money in safer investments, and as traditional and decentralized finance converge, stablecoins are posed to play a more significant role in the crypto ecosystem.

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