Stablecoins are considered intermediaries between digital assets and traditional markets. Perhaps, this has influenced their publicity on a large scale ever since the first stablecoin was issued.
The most popular stablecoin is definitely Tether and its token USDT. Its features including the “freeze” of funds have gained a lot of attention from both investors and crypto holders, not to mention that it is successfully traded in pair with the world’s most famous cryptocurrency Bitcoin (BTC).
In its recently issued research, Blockchain.com underlined that Tether rules the stablecoin-based market despite all the negative comments regarding its lack of value.
“Tether is the second most actively traded cryptocurrency, equal to approximately 60% of BTC daily trading volume. Earlier this year Tether entered the top-10 crypto asset rankings by market value, and it currently comprises 93% of the total market value of all stablecoins. Even with the success of new entrants like TrueUSD in gaining listings on major exchanges, Tether continues to dominate and commands approximately 98-99% of all stablecoin trading volume.”
It is worth mentioning that the value of stablecoins does not give investors confidence as standard cryptocurrencies as Bitcoin and Ethereum do. Their argument is that they are backed from fiat currencies, often US dollars.
Regardless of the USDT influence on the market, the study concluded that the level of transparency it involves is “low”. On the other hand, the asset of the coin is that it is listed by many famous cryptocurrency exchanges such as Poloniex, Kraken, and Bittrex.
“Tether dominates the current stablecoin landscape. It is the most widely adopted stablecoin and is used by many industry-leading exchanges such as ShapeShift, Bittrex, Bitfinex, Binance, and Poloniex. It has proven particularly attractive to significant exchanges that do not offer US dollar customer accounts. For example, in 2017 Tether experienced a rapid increase in volume on Poloniex, arguably playing a pivotal role in it becoming the market leading exchange by volume in mid-2017.”
At the time of writing, Tether’s USDT is traded at $0.997748 and has a market cap of $2,800,102,759.