Tether [USDT], one of the most controversial stablecoins of 2018, continued to gain the cryptocurrency market’s attention this year. From speculations and allegations over the coin not being backed by the U.S Dollar against its claims in 2018 to becoming a coin not being entirely backed by the U.S dollar in 2019, the coin made headlines all year long.
Taking all this into consideration, Ceteris Paribus, a Twitter user, pointed out that the market cap of Tether witnessed a significant drop over the past year. At the beginning of 2018, the coin had control over the entire stablecoin market. However, it witnessed a significant drop towards the end of November 2018.
Based on the post, Tether conceded its market to Circle’s USD Coin [USDC], TrueUSD [TUSD], Paxos Standard [PAX], DAI, and the Gemini Dollar [GUSD]. Nonetheless, Tether still held a majority of the market cap, reigning over 75% of the entire stablecoin market. The cryptocurrency was followed by USDC with control of around 9% and TUSD with 7% control of the entire stablecoin market cap. The rest was covered by DAI and Gemini Dollar.
HODL_monk, a Reddit user, stated that the reason for USDC gaining momentum in the stablecoin market was Coinbase. The user said,
“Coinbase just put a BIG boost on USDC, by making it the only way to online fiat to crypto without fees on Coinbase Pro. I will probably be using USDC for that reason alone, and I doubt I will be the only one.”
Cthulhoo, a Redditor said,
To this, Nullius_123 stated,
“I think that once DAI accepts BTC (and other assets) as collateral for its lending system, DAI could become the major player in the stablecoin landscape. It is the only stablecoin that is open and transparent. We don’t even know if Tether is fully capitalized. I am astonished that anyone would risk their capital with it.”
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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.