Despite the widely reported stablecoin economy decline, Tether (USDT), the world’s largest stablecoin by market cap, appears to be unfazed, extending its dominance in the stablecoin market on its way to a new all-time high. While Tether started the year with a 47.4% stablecoin market share, it’s now at 65.89% without showing any signs of slowing down.
On the other hand, most stablecoins have recorded measurable declines YoY, with some of the biggest losers being USD Coin (USDC), Binance USD (BUSD), and Dai (DAI), according to data made available by CoinGecko.
USDC down to 23%, BUSD down to 4%; the stablecoin market decline in numbers
While Tether asserted itself as the market leader among stablecoins long ago, it started the year in review with less than half the total market share at 47.4%. However, the coin has managed to turn that around, enjoying a massive 65.89% dominance.
Surprisingly, trading activity with the stablecoin has dropped dramatically, beating multiple-year lows, leading to questions about its disproportionately huge market cap. Looking at official market data, however, Tether remains the most dominant stablecoin by far.
On the other hand, USD Coin, the second-largest stablecoin by market cap, started the year at 34.5% market share but is now down to 23.03%. Binance USD (BUSD) followed the same trajectory, dropping to 4.21% from 11.8% during the year in review, while Dai completes the three biggest losers, dropping to 3.66% from 4%.
TUSD in a surprising good performance
Surprisingly, TrueUSD managed to survive the massive decline plaguing the stablecoin market, doubling its market share from 0.8% to 1.6%. While it doesn’t enjoy as much support as any of the losers, surviving a full year without declining is enough achievement for a stablecoin as it is.
The general market capitalization of stablecoins has declined for 14 straight months,. This could be the trend for some time. Stablecoin trading volume dropped by 40.6% for the month of May, painting a not-so-optimistic picture than the general coin market cap decline.