Key Points: Tether (USDT), crypto’s preferred pegged currency, is consolidating once more with its stablecoin market share close to 50%.
Tether, Circle, Paxos, and Paxos, along with other stablecoin companies, allow token holders to exchange stablecoins for US Dollars.
As the SEC prepares for a crackdown on dollar-pegged tokens the SEC is preparing to crack down on Tether, the oldest stablecoin. Tether (USDT), which is now the preferred pegged currency in crypto, is approaching 50% for the first times since December 2021. The largest stablecoin issuer has added $2.4 billion USDT to its total circulating supply this year. This represents a 3% increase. Circle’s offering USDC has seen its supply drop by more than $3.3 billion year to date. The current crypto industry has $41.2 billion USDC, which is a 7.5% drop. Binance’s stablecoin, BUSD (branded stablecoin), is third with $16.1 Billion. Paxos in New York manages it. This represents a 3.5% decrease. All eyes will be on the potential fall in supply following the SEC’s announcement. According to a Wells notice the regulator claimed that BUSD is an unregistered security. This allows token holders to exchange stablecoins for US dollar. Market players can purchase tokens directly from issuers to increase their supply. Stablecoin supply, however, decreases because tokens can be burned when they are redeemed. However, tokens can often be reissued to new customers without being burned. DAI’s market value has fallen by $563.4million in 2023, which is equivalent to 10% of its supply. FRAX, the immediate competitor with an algorithmic component of DAI, has remained steady over the past three months and remains in fifth place. TrustToken’s trueUSD, (TUSD), is ranked sixth. However, it is the most successful for growth. It has added $190.4million this year, which is a 25% increase in its supply. They are comparable to Circle’s and Tether’s but have a smaller granularity. This year, the stablecoin market has dropped by 1.5%, losing little more than $2.1 billion.Total stablecoin dominance peaked at just under 20% when FTX crashed in November, but has since fallen to 14.38% as crypto markets rebounded.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuChubbiCoincu NewsTags: BlockchainmarketStablecoinTetherTether’s USDT stablecoin