Saturday, March 25, 2023

Tether's USDT Market Dominance Touches new High, BUSD Supply Drops $2B

Tether USDT’s market dominance has risen to its highest level since November 2021, according to DeFillama data. On the other hand, Binance-backed BUSD has seen its supply shrink by roughly $2 billion in the last 30 days.

According to DeFillama data, the top three stablecoins control roughly 92% of the market. USDT is the dominant stablecoin in the crypto space, with its dominance at 49.18%, while stablecoins like Circle’s USD Coin have a market dominance of 31.05%. BUSD’s dominance stood at 11.52% as of press time.

Stablecoin’s Market Cap Declined to $137 Billion

A recently released stablecoins report by CryptoCompare stated that the total market cap of stablecoins has declined for ten straight months to $137 billion this January. The report added that the lowest market cap stablecoins have been since 2021.

According to the report, USDT’s market cap slightly rose 0.82% to $66.7 billion, while its significant rivals, USDC and BUSD, fell 2.27% and 3.97% to $43.1 billion and $16.1 billion, respectively. Meanwhile, the market cap of lesser-known stablecoins like True USD (TUSD) and failed algorithmic stablecoin TerraClassicUSD (USTC) rose 24.5% and 13.1% to $940 million and $225 million, respectively.

BUSD Had a Troubled January

The Binance-backed stablecoin has experienced a turbulent past month after reports emerged about past mismanagement.

Bloomberg reported on Jan. 10 that the mismanagement at times left BUSD’s reserves with over $1 billion in missing collateral....

source: https://beincrypto.com/usdt-market-dominance-rises-as-busd-supply-fall-by-2b/