Tether's USDT Gains Dominance in Global Stablecoin Market

Tether's USDT has firmly established itself as the dominant force in the stablecoin market, emerging as the global standard for dollar-pegged digital currencies. This shift has been largely influenced by regulatory decisions in the United States, which have pushed USDT to prominence overseas. Since mid-2022, the gap between the circulating supplies of Tether and Circle's USDC has widened significantly, from a mere $10 billion to over $65 billion. Tether's market capitalization has skyrocketed to $90 billion, granting it nearly 70% of the stablecoin market share, while Circle's share has dwindled to 18%​​.

The divergence in stablecoin use is also reflected in their trading volumes, with USDT's volumes being nine times higher than those of USDC. This indicates a clear distinction in their use cases: USDT is increasingly utilized for transactions, particularly in unregulated markets and emerging economies, while USDC is more focused on holding value or as a safe haven for U.S.-based firms​​. Despite Circle's expansion into Asian markets, USDT remains the preferred retail stablecoin for markets desiring dollar liquidity​​. Overall, the top two stablecoins, USDT and USDC, command an impressive combined market share of 88%, leaving limited space for competitors like Binance USD (BUSD) and decentralized stablecoin DAI​​.

_{Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.}