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- The stablecoin space has multiple players yet USDT holds a leading position.
- Currently the stablecoin holds a market cap of over 65 billion USD
Constant change is synonym for cryptocurrency space given its nature as it widely remains unstable. Stablecoins come handy amidst such situations, when the broader crypto market witnesses carnage, becoming a safe haven. The crypto market has evolved and has seen multiple stablecoins to come along, yet Tether (USDT) remained at top, by any means.
In crypto space, it’s not surprising to see an asset achieving euphoric highs and in contrast witnessing an overnight plunge in no time. Eliminating this possibility, stablecoins are capable of sticking to fixed assets. Be it fiat currencies or commodities to keep their price stable. As far as the peg is maintained, the stability is going to be retained. USDT is one of those coins that has remained stablecoin most of the time since its inception.
USDT: Synonym of USD Over Blockchain
Launched in 2014, USDT issuer Tether intended to bring a sustainable crypto asset which could leverage the power of blockchain technology while keeping the features of USD. Chief Technology Officer, Paolo Ardoino, explained during a podcast that USDT is the result of efforts to put the USD itself over blockchain. The stablecoin acts as a bridge between crypto and fiat currencies.
Earlier crypto users had no other option to deal with cryptocurrency purchase and selling. The transaction would be taking place in exchange of USD. Since the market is volatile, it could be anytime that a user would need to sell the crypto holdings resulting in the user’s exit from the crypto ecosystem at once. The possibility almost disappeared with the emergence of USDT.
Now crypto users can transact using USDT for both buying and selling other crypto assets like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL) and a lot more. In case of selling, users can easily move their assets into USDT enabling them to get rid of sell-off risks while staying in the ecosystem.
The stablecoin is special as it showcases the best of both worlds. Its stability and trust makes it an eligible substitute for USD while keeping the cutting edge features of blockchain—decentralization, faster and cheaper transactions all across the world.
USDT’s Edge Over Others
USDT holds the first-mover advantage reflecting its dominance over the stablecoin market full of other competitors like USDC, BUSD, DAI and several others. The biggest stablecoin holds a market capitalization of more than 65 billion USD—more than any other player across the stablecoin ecosystem—making it the third crypto asset with the highest market cap after Bitcoin (BTC) and Etheruem (ETH).
The stablecoin offers integration with multiple blockchain enables it to hold specific advantages of a particular blockchain. USDT runs over Bitcoin and Omni among the primary blockchains while Etheruem, TRON (TRX), Avalanche (AVAX), EOS (EOS) and several other prominent blockchain. USDC, BUSD DAI like stablecoins, other than USDT, miss such multichain features.
USDC is the second biggest stablecoin after USDT in terms of market cap and it’s also quite popular across the space. Currently it holds over 42 billion USD worth market capitalization. The stablecoin was neck to neck once but following several instances it could not hold its position and lost its position becoming fifth largest cryptocurrency.
Given the use cases, availability across blockchains, high returns on stablecoin staking over yielding platforms, USDT remained the most preferable asset. Such characteristics make it the most traded crypto asset across the crypto market. USDT even beat Bitcoin (BTC) in terms of trading volume.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
