Stablecoin providers have been vying to capture significant market share as the overall cryptocurrency market expands with increased user involvement. Tether (USDT), it appears, continues to dominate the market, with $61 billion USDT coins in circulation.
However, it appears that competitors such as Circle’s USDC and Binance’s BUSD are making significant inroads into the industry. This is due to the fact that no USDT has been issued in the recent two months. As a result, its market value and share have plunged to a historic low of only 57.38 percent.
This has allowed competitors like USDC and BUSD to enter the market. During the same time period, USDC’s share increased by 24.39 percent, while BUSD’s share increased by 10.9 percent.
Tether’s Regulatory Problems Are Getting Worse
Tether’s regulatory issues do not appear to be going away anytime soon. The United States Department of Justice (DoJ) launched a criminal investigation into alleged bank fraud last week.
“Federal prosecutors are investigating whether Tether concealed from banks the fact that transactions were related to cryptocurrency.” The case stretches back to Tether’s early days when it was suspected of issuing excess USDT during the 2017 bull run without backing it up with tangible dollars.
Tether has stated that it is willing to work with law enforcement agencies at all levels. Tether appears to have suspended any new entries to the market as a result of the regulatory onslaught.
It appears that the corporation is unwilling to ruffle regulators’ feathers. Tether CTO Paolo Ardoino addressed the issue last month in July. In response to Tether’s loss of market share to competitors, he stated:
Nobody takes from the king, not even the smallest. Duh… (However, click-baiting is more crucial.) In any industry, competition and diversification are essential for success.
Whether you believe it or not, ‘Let everyone grow so that the sum of all voices becomes louder.’ is what will make the stablecoin sector far more stable in the long term. So… yeah. We don’t mind seeing progress. Everyone is welcome. We only care if the game is fair and balanced.