- USDT’s dominance on the market has decreased significantly since last bull markets.
- USDT was affected by the rise in FDUSD, backed by Binance.
Largest in the World stablecoin Tether [USDT] It was a historical feat when it reached $100 billion for the first ever time in its market cap. It was the third crypto to join the club. Bitcoin [BTC] You can also find out more about the following: Ethereum [ETH] The other members.
USDT increases in bull market
AMBCrypto, based on its analysis of Glassnode’s data found USDT’s market capitalization to be 22% more than the market cap at 2021’s peak bull market. According to AMBCrypto’s analysis of Glassnode’s data, USDT market cap was 22% higher than at the peak of 2021 bull market.
Glassnode
USDT trading volume has not matched the USDT market cap, which clearly exceeds 2021’s peaks.
Trading volumes still lag 2021 peaks
The crypto market data provider KaikoUSDT volumes weekly on central exchanges are comparable to the levels seen during the bull market of the past, but they remain lower than $660 Billion, the record high recorded in 2021.
Source: Kaiko
USDT’s dominance on the market has declined dramatically since last year’s bull market. In 2020-21 it represented over 95% the volume of stablecoins traded, but this dropped to just 71% by March 2024.
According to the chart below, the vast majority of the market was captured by Binance-backed First Digital USD [FDUSD].
Source: Kaiko
Binance has aggressively promoted FDUSD, which was launched in July of last year.
It was also the most traded stablecoin with a share of over 21% in 2024. This was the fourth-largest Market capitalization as at this time.
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The rise of FDUSD helped in a way to balance the unstablecoin market.
USDT has the largest share in the current market, but it is shrinking due to the rise of new players.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com
