The market dominance of stablecoins that has been pegged to the USDT has gone through quite a few changes over the last year. Although most of them have been moving in a downward trend, USDT has managed to climb back to its all-time high, according to data provided by CoinGecko.
In the last 12 months, the USD Coin of Circle has seen a decline in the market share from 34.88% to 23.05%. The market participation of Binance USD plunged from 11.68% to 4.18% in the same period, while the share of Dai in the crypto market was at 3.66%, down from 4.05% in May 2022. Tether’s cryptocurrency has been gaining ground at the same time. The market dominance of stablecoin currently sits at 65.89% from 47.04% just a year ago. Its market capitalization has also soared to $83.1 billion, while the market cap of USDC has gone down from a peak of $55 billion to just $29 billion.
USDT Could Be Seeing A Rise In Recent Times
In a recent interview with Bloomberg, Jeremy Allaire, the CEO of Circle blamed the regulators of the United States, as well as the crypto crackdown caused by them, for the declining market capitalization of the stablecoin. The current environment in the United States does appear to be beneficial for USDT. The banking crisis in the United States led to USDC depegging in March as the reserves worth $3.3 billion were stuck at the Silicon Valley Bank, one of three crypto-friendly banks which were shut down by the regulators. Despite the assurances from Circle, the market did respond to the news quickly.
Over the last few years, USDT has been criticized heavily for lacking transparency. This is owned by iFinex, a Hong Kong-based firm, which was fined $18.5 million in 2021.