Stablecoin

2024

USDC

Ethena

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 <p>Market intelligence platform Kaiko Analytics reports that new competitors are chipping away at Tether’s (USDT) stablecoin dominance.</p>
 <p>In a new report titled “Tether Loses Market Share,” Kaiko Analytics says that the stablecoin issuer’s market share over centralized exchange platforms (CEXs) has dipped 13% year-to-date (YTD) due to the growth of rival dollar-pegged digital assets, such as FDUSD and USDC.</p>
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 <p><em>“Despite its dominant market position, USDT’s market share on CEXs has been trending downwards, declining from 82% to 69% YTD. This decrease can be partly attributed to growing competition from stablecoins like FDUSD which benefit from Binance’s zero-fee promotions.</em></p>
 <p><em> USDC has also experienced a rise in its market share, signaling a growing preference for regulated alternatives. At present, stablecoins issued in the US make up 10% of the overall stablecoin trade volume.</em></p>
 <p><em> Only one of the top five stablecoins by market cap, Circle’s USDC, is regulated under state US money transmitter frameworks. Nevertheless, its share has increased from less than 1% in 2020 to 11% today.”</em> <img decoding="async" class="aligncenter" src="https://cdn.thebittimes.com/images/2024/05/02/fd232b6acaf2e1d46cac782fb409475f.webp" alt="screenshot-2024-04-29-at-10" width="1063" height="499">According to Kaiko, other rivals such as Ethena (USDe), which uniquely offers yield, could also be cutting into Tether’s market dominance.</p>
 <p><em>“Another reason for Tether’s declining market share could be linked to the emergence of innovative yield-bearing alternatives such as Ethena’s USDe. Since its launch in February, USDe’s volume has grown significantly, although it has retreated from April’s all-time high of more than $800 million following Ethena’s ENA airdrop.”</em></p>
 <p>According to Tether’s 2024 Attestation Report, the firm posted a record-breaking $4.52 billion in profits during the first quarter of the year.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/new-competitors-eating-away-at-tether-s-usdt-stablecoin-dominance-kaiko-analytics-tbt87178.html">https://thebittimes.com/new-competitors-eating-away-at-tether-s-usdt-stablecoin-dominance-kaiko-analytics-tbt87178.html</a></p>

New Competitors Eating Away At Tether’s USDT Stablecoin Dominance: Kaiko Analytics

TheBitTimes

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