The market dominance of Tether (USDT) in the stablecoin arena has hit a new peak of 63.99%.
Data from Coingecko reveals that USDT’s dominance has increased considerably since early March and after the collapse of US-based Sivergate and Silicon Valley Banks.
Tether’s Market Cap Returns to Pre-LUNA Crash Level
Regarding market cap, Tether‘s has grown considerably by 23.33% from $66.2 billion in early January to current levels of $81.65 billion. Its current market cap is also very close to its May 2022 peak of $83.264 billion, and before the collapse of Terra (LUNA), UST sent shock waves in the crypto industry.
The market cap chart below also shows that as USDT’s market cap has grown, that of USDC and Binance USD has plummeted.
Tether Has Benefited from the Banking Turmoil and Regulatory Pressures in the US
As mentioned earlier, Tether’s growth in 2023 has been due to the banking crisis in the United States. Tether is a non-US company, and the banking turmoil that has affected USDC has not directly affected its operations.
In addition, US regulators ordered Paxos to stop minting BUSD, leaving the stablecoin arena open for USDT’s resurgence.
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