Tether (USDT) continues to dominate the stablecoin market, surpassing a new all-time market cap of over $83 billion.
Tether (USDT) Market Cap Reaches All-Time High (ATH)
At a time when USDT is reaching new market cap heights, other stablecoins are struggling to maintain their market dominance.
The new ATH market cap for the USDT stablecoin comes at a time when other stablecoin issuers are struggling to stay afloat due to regulatory measures. The same was voiced by Changpang Zhao, CEO of the cryptocurrency exchange Binance.
Quoting the tweet from Binance CEO Tether, “BUSD, a fully regulated stablecoin, is capped at $23 billion by NYDFS (no new issue). Now its market value is $5 billion,'' he said.
The second largest stablecoin, USDC has a market cap of over $50 billion at $28.8 billion.
The protracted bear market in 2022 has hurt both stablecoins, which saw a drop in market value after the June 2022 high.
However, USDT has managed to bounce back with a higher market dominance, while USDC's market cap has almost halved.
The prominent reason for the decline in the market share of other stablecoins can be attributed to the regulatory scrutiny shown by the United States regulators, which added to the banking crisis.
After the re-issue of BUSD was banned due to alleged security breaches, the market cap of BUSD dropped sharply as users started converting their BUSD to other stablecoins.
Similarly for USDC, the major crisis came in the form of the collapse of Silicon Valley Bank, where the stablecoin issuer held approximately $3.3 billion in reserves. This situation caused panic in the market and then a divergence from the US dollar.
Even though USDC was re-pegged the next day, it had a significant impact on market cap as many converted their USDCs to other stablecoins for fear of a complete crash.
*Not investment advice.