Stablecoin Market Sees Supply Increase for Tether as Competitors Decline in Light of Recent Regulatory Developments
While the stablecoin market has seen significant redemptions in the past three months, the supply of tether, the largest stablecoin by market capitalization, has increased by 2.46 billion since mid-November 2022. Tether is the only one of the top five stablecoins by market valuation that has seen a supply increase in the past three months. Tether Supply Rises While Competitor Stablecoins See Declines
Much has changed in the past three months following the collapse of FTX and its aftermath. The stablecoin economy has experienced significant redemptions, and 30-day statistics from February 14, 2023, show that three of the top five stablecoins have seen a decline in their market capitalizations. The affected stablecoins are usd coin (USDC), binance usd (BUSD), and DAI. While BUSD experienced significant redemptions after the announcement that Paxos would no longer mint the stablecoin, USDC saw the largest decline, losing 6.2% in the last month. BUSD decreased by 4.5% in the last 30 days, and DAI had a slight decrease of 0.1%.
Tether (USDT), on the other hand, has seen a 3.2% increase in supply over the last 30 days. In fact, over the past three months, USDT’s supply has grown by 3.74%. Together, the top five stablecoins make up the majority of the stablecoin economy and the significantly large trade volume of dollar-pegged tokens. On November 17, 2022, USDT’s circulating supply was around 65.94 billion, and after a 3.74% increase, it has risen to 68.41 billion today. While USDT’s supply has grown over the past three months, the bottom four stablecoins have not seen any growth and, in fact, have all experienced declines.
For example, usd coin’s circulating supply on November 17, 2022, was around 44.40 billion, but it has since dropped to the current 40.98 billion. BUSD had a circulating supply of 23.03 billion on November 17, 2022, and it is now roughly 15.69 billion, a decrease of 31.87%. Makerdao’s DAI token has a circulating supply of 5.09 billion today, compared to 5.44 billion three months ago, a 6.43% decrease. The fifth-largest stablecoin by market valuation, FRAX, had a circulating supply of 1.177 billion on November 17, 2022, and now has 1.024 billion as of February 14, 2023, a decrease of 12.99%.
Over the past five years, stablecoins have greatly expanded, with some dollar-linked tokens failing to endure. The stability of the reserve and the issuer’s ability to uphold it are crucial factors in a stablecoin’s success. The Terra UST collapse of 2022 underlined this importance, and the past year has demonstrated that the stablecoin economy is greatly impacted by external factors like economic conditions, market volatility, and regulatory developments. Tags in this story 30-day statistics, aftermath, Altcoins, Binance USD, circulating supply, collapse, crypto industry, DAI, decline, Decrease, Dollar Altcoins, dollar-pegged tokens, economic conditions, expansion, external factors, FRAX, ftx, Implosion, increase, issuer, Market Capitalization, Market Valuation, market volatility, redemptions, regulatory developments, Reserve, Security, significance, Stability, Stablecoin, strength, Supply, Terra UST, Tether, Top Five, trade volume, underlying reserve, usd coin
What are your thoughts on Tether’s recent supply growth compared to the rest of the stablecoin market? Share your thoughts in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Binance CEO Warns of "Profound Impacts" on Crypto Industry if BUSD Is Ruled as a Security ALTCOINS | 1 day ago Stablecoin Market in Flux: More Than $2 Billion in USDC Redemptions in 30 Days ALTCOINS | 4 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: BTC Edges Closer to $22,000 Ahead of US Inflation Report Next articleBitpanda-backed Pantos Launches Public Beta of Its Multichain Token System Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto