The ongoing drama surrounding the opaque operations of Tether throughout 2018 has driven the proliferation of similar pegged currencies, leading to USDT’s dominance over the stablecoin markets waning. Despite this shift, USDT trade volume has risen 100 percent since tether’s dramatic decoupling from its dollar peg in October.
Tether Loses Stablecoin Crown Amid Controversy
At the start of 2018, USDT accounted for approximately 94 percent of the entire stablecoin market. According to Diar, Tether’s dominance fell to 74 percent as of December 2018. As of this writing, Tether is the seventh largest cryptocurrency by market capitalization with a circulating supply of 1.85 billion USDT, down from over 2.8 billion on Oct. 7, 2018.
Continual speculation regarding the opaque nature of Tether’s operations and accounting, punctuated by a crash that saw the price of the so-called stablecoin drop to $0.88 on Oct. 15, paved the way for rival dollar-pegged cryptocurrencies to grow their market share. The major stablecoin competitors to emerge have been Trueusd (TUSD), Paxos Standard (PAX), Circle’s USD Coin (USDC), and Dai (DAI).
Tether Decoupling Drives Demand for Stablecoin Alternatives
On Oct. 14, one day before Tether’s dramatic decoupling from its dollar-peg, tether was the eighth largest market cap with a circulating supply of 2.66 billion USDT and a 24-hour volume of $2.02 billion.
The second largest stablecoin, trueusd, was then the 48th largest crypto by capitalization with a circulating supply of 135.3 million TUSD and a 24-hour volume of $11.75 million.
Dai comprised the 97th largest crypto with an outstanding supply of 60.8 million DAI and a 24-hour volume of $4.2 million,