Stable Tether (USDT) has been the leading primary cryptocurrency pair for over eighteen months.
This is an impressive achievement given the ongoing lawsuit with the New York Attorney General and other frequent rumors that USDT is not receiving adequate support or is not subject to regulatory reach.
USDT is also the dominant stablecoin in China, although the country banned cryptocurrency exchange in 2017. This is because major exchanges such as Binance, Huobi and OKEx have developed into a stable currency as the major primary pair.
It is also worth noting that in June 2019, competitors such as USD Coin (USDC), TrueUSD (TUSD) and Paxos Standard (PAX) had a total capital of $ 520 million. During the same period, the market value of USDT exceeded $ 3.1 billion.
Over the past fifteen months, Tether’s market capitalization increased to $ 15.7 billion, while the market value of four competitors was $ 4.1 billion. Despite all the controversy over the support of the US dollar, USDT maintained a market share of close to 80% of all stock-backed currencies.
Approximately the same image is noted in terms of volumes: 75% lead is prevalent in the tape.
CryptoCompare data shows that USDT has captured nearly 73% of the market by volume over the past three months. Before we proceed, it’s worth noting that the numbers will vary depending on each data provider, as some exchanges are often excluded due to a lack of transparency.
Despite these disagreements, CryptoCompare research leader Konstantin Zafleris explained:
“When it comes to trading bitcoin in USDT or other stable currencies like USDC or PAX, we haven’t seen any significant volume changes.”
The steady decline of currencies has nothing to do with the price of bitcoin
Most traders are accustomed to using Bitcoin (BTC) as the main gateway for cryptocurrencies. This may be the only or at least the most liquid solution for most traders in 2017 or 2018, but with the growth of the stable foreign exchange market, the volumes of altcoins associated with USDT are increasing.
The wider offer of alt currency pairs was followed by higher volumes of the stablecoins, and with the launch of the stablecoins Coinbase, Huobi and Binance, the trend has intensified.
It would be a mistake to conclude that the decrease in the use of bitcoin as the main trend in the cryptocurrency is driving down the price. Those who buy BTC as a passport may have increased in size, but used the same amount to sell it later for the alternative currencies.
Also, even if someone were to use the stack coins as a leading solution on the ramp, some of that power would eventually go to Bitcoin. Moreover, most crypto assets do not directly compete with the BTC store for value and scarcity offerings.
For example, the chart shows $ 26.6 million from Chainlink (LINK) to BTC in the last 24 hours. A similar trend has occurred with the remaining altcoins, confirming that Bitcoin is not losing its volume as the hoarding coins have become the dominant large pairs.
By analyzing the total size of the cryptocurrency market, one can decide whether stablecoins increase their overall market share or push the markets away from Bitcoin.
The above chart might surprise even traders who hit the bubble at the end of 2017. The average daily peak of $ 36.6 billion in January 2018 might be very high at the time, but it is rather modest compared to the $ 100 billion today.
Whether or not false sizes influence this perception, we are seeing relatively large growth. This increase in volume coincides with the issuance of a stable currency from $ 3.6 billion in June 2019 to $ 18.9 billion now.
Size spread is the most important factor
Michael Sellor, Co-Founder and CEO of MicroStrategy believes that BTC is primarily used as a reserve currency. Hence, it does not compete with tokens like Ethereum (ETH) and stacked coins.
Unlike traditional market value-based bitcoin dominance data, Sailor analysis only includes proof-of-work currencies.
Even when comparing the size of Bitcoins against a wider asset base, it matches the sum of the top 20 altcoins when analyzing transparent volume.
30-day net stack volume in dollars C.