Tether Is Slowly Losing Its Market Share: Analysis

Tether is slowly losing its market share and sits on a $68 billion market cap which is the lowest since 2021, down from the ATH of $83 billion as we can see more today in our latest Tether news.

Since 2021, the stablecoin underwent a cascade of declines and according to the data from CoinGEcko, it shed around $4 billion since June 14^th. TerraUST collapse pushed the market players to seek sanctuary in other digital assets which maintain a one-to-one peg with USD so as a result, the ensuing marekt contagion drove stablecoins to collapse during which USDT lost its dollar peg briefly and its dollar parity dropped to 95 cents. While it managed to re-peg, the death spiral resulted in most investors avoiding the stablecoin for USDC.

1/
This morning @Tether_to received a ransom request to avoid mass DDOSes.
They tried already once.
On a normal day we have around 2k reqs/5min
The attack brought us to 8M reqs/5min. pic.twitter.com/rWEan5VNFX

— Paolo Ardoino (@paoloardoino) June 18, 2022

Upon gauging further, it was found that unlike the falling market cap of USDT, Circle’s stablecoin continued to follow an upward trajectory. After topping out in the first week of March, the USDC market cap bounced back and it went on to become the stable coin of choice for the ETH blockchain. At the same time, Binance USD noted a minor but relevant bounce back up and with TerraUSD gone, the three biggest stablecoins managed to retain their positions on the market. Tether is slowly losing its market dominance but the shrinking market cap came days after refuting the rumors that the stable coin is backed by Asian and Chinese commercial paper. Celsius, the stable con issuer noted:

“Celsius position has been liquidated with no losses to Tether. Tether’s lending activity with Celsius (as with any other borrower) has always been overcollateralized. Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company. Tether is aware of other rumors being spread, suggesting that it has a lending exposure to Three Arrows Capital – again this is categorically false.”

Tether’s CTO Paolo Ardoino outlined an attack against the company’s servers and reassured that it was not successful. While other stablecoins are eating up Tether’s share for the first time in history, the stablecoin supply as a whole dropped in the second quarter of 2022. out of all centralized issuers, Tether witnessed the most redemptions and wiped about 7 billion of its supply in one month after trying to pull out from the marekt and avoid furhter damage.

The declining prices of all non-stablecoin assets mean that the stablecoins increased in terms of market cap and the data shows that there are four of these assets in the top 10 cryptocurrencies.