Market capitalization of stablecoins The world's largest coin raised a modest 0.7% (less than $500 million) for the first time in the three months that took place on July 29. As of August 2, there have been four mints. USDT. Therefore, industry experts believe this is positive for the industry as a whole.
Pumping money into USDT
Gabor Gurbacs of Van Eck Associates Corp., says the move could mean new capital being invested or old capital coming back into the space.
If new capital is moving in, it could mean that new USD is being invested. If old capital comes back, that means it is invested by experienced people.
Both signal growth.”
Tether's market capitalization peaked at $83 billion in May of this year, before dropping by more than 20% to $66.41 billion today.
Tether Dominance Is Declining
Once dominated by nearly 90% stablecoin market capitalization, but Tether's market share has dropped significantly over the past few years and is now only around 45%. This year's drop has created an opportunity for other rival stablecoins to capture market share. When USDT shrinks, USD Coin (USDC) of the Circle has been noticed.
Binance USD (BUSD), the third largest stablecoin, has also managed to increase its market share by 7.5x over the past few years.
The growing stablecoin market also indicates that a significant portion of fiat money is still waiting on the sidelines. This has been confirmed by CEO Changpeng Zhao of Binance that investors don't necessarily have to hold stablecoins if they want to exit the market completely cryptocurrency.