• Tether’s USDT stablecoin has seen its market share surge to its highest point since July 2021, according to data from Blockworks.
• This surge comes amid difficulties for rival stablecoins USDC and BUSD, who have both recently lost their $1.00 peg.
• Despite facing scrutiny over the validity of its reserves, USDT remains the world’s third-largest digital asset with a total market capitalization of approximately $73 billion.
Tether’s USDT Climbs to Highest Market Share Since July 2021
Difficulties Surrounding Rival Stablecoins
According to Blockworks‘ data analysis of stablecoin supply composition, USDT’s assets total market share has risen to its highest point since at least July 12, 2021, currently sitting at 56.4%, after increasing by 5.4% in the past 30 days.
The surge in market share comes after a busy weekend in the world of stablecoins, with two of the industry’s other top five tokens — USDC and DAI — both losing considerable ground after briefly losing their $1.00 peg.
On-chain analysis of aftershocks from the SVB bank run that began on March 8 shows that stablecoin volume surged as investors moved in and out of USDC. A wallet belonging to long-time crypto entrepreneur Justin Sun was found to have made $3.3 million, flipping USDT into USDC.
Stablecoin Market Share
(Source: Blockworks Research)
USDT Weathers Economic Downturn
As the market leader, Tether seems to be weathering the storm of the broader economic downturn stemming from the collapse of three U.S. banks, which led to the brief depegging of another stablecoin, USDC
