Tether Benefits From USDC Chaos, USDT Dominance Now 58%

Tether, the largest stablecoin in the crypto market, has reportedly benefited from the recent chaos surrounding USDC. As a result, Tether’s dominance in the stablecoin market has increased to 58%. With USDC facing scrutiny and regulatory issues, investors are turning to Tether as a more reliable alternative. As stablecoins become increasingly popular, Tether is poised to remain on top of the market.

According to a recent report from Glassnode, Tether USD (USDT) has experienced an increase in dominance, reaching 57.8%. The term “dominance” refers to the proportion of a stablecoin’s total supply that a particular token accounts for. When this metric rises, it suggests that investors are shifting towards that token from other stablecoins, indicating a rising preference for it in the market.

The report indicates that Tether’s dominance had been declining since mid-2020 but has started to recover in recent months due to two main events. The first was the regulatory crackdown on Binance USD (BUSD), causing its dominance to drop significantly. The second was the chaos surrounding USD Coin (USDC), which briefly lost its $1 peg due to concerns over its backing. While USDC’s dominance remained relatively stable, Tether benefited from the situation, seeing a sharp rise in dominance.

The report also notes that Dai’s price suffered due to its reliance on other stablecoins, including USDC. The value of Bitcoin has surged in the last week, with prices hovering around $26,000.

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