USDC

Read

Tether’s <a href="https://crypto.news/price/tether/" rel="noopener noreferrer nofollow">USDT</a> stablecoin’s market share on centralized exchanges (CEXs) has decreased from 82% to 74% so far this year.
This decline in dominance highlights the growing competition in the stablecoin market and the potential regulatory challenges facing Tether.
<h2 class="wp-block-heading" id="eu-regulations-and-new-competitors">EU regulations and new competitors</h2>
Notwithstanding the drop in market share, Tether (USDT) remains the most widely used stablecoin, with a market capitalization of over $100 billion. Tether’s popularity is driven by its ability to provide a stable, fiat-backed digital currency that facilitates seamless transactions and trading across the cryptocurrency ecosystem.
The Kaiko Analytics <a href="https://research.kaiko.com/reports/q2-2024-markets-report%C2%A0" target="_blank" rel="noopener noreferrer nofollow">report</a> notes that Tether’s market share decline comes as the European Union prepares to implement the new Markets in Crypto-Assets (<a href="https://crypto.news/mica-regulations-mostly-benefited-usdc-kaiko-says/" rel="noopener noreferrer nofollow">MiCA</a>) regulation, which is expected to impact stablecoins like USDT.&nbsp;
MiCA will restrict the sale of stablecoins to EU investors, potentially leading exchanges such as Kraken to review their support for USDT.
Tether’s CEO, Paolo Ardoino, has also <a href="https://www.binance.com/en-NG/square/post/2024-06-04-tether-ceo-expresses-concerns-over-eu-crypto-regulation-9037977354706?utm_source=perplexity" target="_blank" rel="noopener noreferrer nofollow">expressed</a> concerns about certain aspects of MiCA’s requirements and stated that the company has no plans to be regulated under the new rules in the medium term.
This regulatory uncertainty could further erode Tether’s market share as exchanges and users seek alternative stablecoins that align better with emerging regulatory frameworks.
According to the report, the stablecoin market is diversifying as prominent alternatives such as Circle’s <a href="https://crypto.news/price/usd-coin/" rel="noopener noreferrer nofollow">USDC</a> gain traction.
You might also like: <a href="https://crypto.news/tether-mints-1-billion-usdt-on-ethereum-forecasting-an-etf-approval/&nbsp;" rel="noopener noreferrer nofollow"> Tether mints $1 billion USDT on Ethereum, forecasting an ETF approval </a>
<h2 class="wp-block-heading" id="tether-to-suspend-usdt-redemptions">Tether to suspend USDT redemptions</h2>
On July 11, Tether <a href="https://crypto.news/tether-discloses-timeframe-for-suspending-usdt-redemptions-on-multiple-networks/" rel="noopener noreferrer nofollow">announced</a> its plan to suspend USDT redemptions on several blockchain networks. The company stated that this decision is aimed at ensuring the long-term sustainability of the USDT ecosystem.
Tether will gradually phase out support for USDT on multiple networks over the coming months. Specific timelines for each network will be provided separately to facilitate a smooth transition for users.
This strategic move is part of Tether’s effort to streamline operations and focus on the most widely adopted blockchain networks. By halting USDT redemptions on less active networks, Tether aims to improve the overall user experience and maintain the stability of the USDT peg.
In other news, DWS, a leading European investment firm, has <a href="https://www.reuters.com/markets/currencies/dws-launches-jv-first-german-regulated-euro-stablecoin-2024-07-11/?utm_source=perplexity" target="_blank" rel="noopener noreferrer nofollow">established</a> a new entity to launch <a href="https://crypto.news/is-germany-done-transferring-their-bitcoin/" rel="noopener noreferrer nofollow">Germany’s</a> first cryptocurrency under national regulation. The firm aims to introduce a euro-based stablecoin that is compliant with Germany’s financial watchdog, BaFin, by 2025.
Moreover, Tron (<a href="https://crypto.news/price/tron/" rel="noopener noreferrer nofollow">TRX</a>) founder Justin Sun has revealed plans to <a href="https://crypto.news/trons-justin-sun-reveals-gas-free-stablecoin-transfer-solution-development/?utm_source=perplexity" rel="noopener noreferrer nofollow">introduce</a> a fee-free stablecoin, which, if successfully implemented, could revolutionize the stablecoin market.&nbsp;
The stablecoin market continues to evolve, with significant contributions from companies like Coinbase and Circle. Coinbase <a href="https://www.fool.com/investing/2024/07/12/stablecoins-are-the-key-to-coinbases-future/?utm_source=perplexity" target="_blank" rel="noopener noreferrer nofollow">relies</a> on stablecoin revenue, while Circle’s recent approval to operate in Europe marks an important step towards establishing itself as a global standard in the industry.
Read more: <a href="https://crypto.news/is-cryptos-greatest-crash-around-the-corner-the-threat-of-tethers-usdt-collapse/ " rel="noopener noreferrer nofollow"> Is crypto’s greatest crash around the corner? The threat of Tether’s (USDT) collapse </a>

Tether loses ground, market share shrinks to 74%

Inhoudsopgave

crypto.news

Andere artikelen gepubliceerd op 13 jul 2024

Jed McCaleb: From Ripple to Stellar and Beyond, a Visionary’s Journey

JasmyCoin (JASMY): Bulls Back in Charge After Price Plunge?

Janet Yellen thinks the U.S. is to blame for the death of dollar

$310M Surge in Bitcoin ETF Investments Marks One-Month High, BTC Flips Bullish

Will Bitcoin ETFs’ $15.5 billion net inflows be enough to rescue BTC’s price?

Sen. Cynthia Lummis praises Bitcoin, calls CBDCs ‘the beast’

Meld je aan voor onze gratis nieuwsbrief voor dagelijkse crypto-updates!