While USDT has observed a decline in its marketshare during the year 2022 so far, the stablecoin still retains its place at the top.
USDT Is Still Number One In Stablecoin Market, USDC Remains 2nd
According to the latest weekly report from Arcane Research, USDT’s share of the stablecoin market has now gone down to 45% this year.
The marketshare here refers to the percentage of the total market cap that the stable in question is contributing. For any crypto, the “market cap” is calculated by multiplying the number of coins in the circulating supply with the price of the crypto.
And since the major stablecoins are tied to the dollar, their USD market caps are simply equal to their total circulating supply. Now, here is a chart that shows how the marketshare of the different stables has changed during the year 2022 so far:
Looks like USDC has lost some share in recent weeks | Source: Arcane Research's The Weekly Update - Week 38, 2022
As you can see in the above graph, back during the start of this year, USDT made up for 49% of the total stablecoin market cap. Since then, however, the coin has dropped 4% marketshare over the months.
The report notes that USDC’s strong end to last year made many analysts believe the stable will take over Tether’s position at the top of the pyramid.
The coin did carry its momentum into this year, rising from 27% at the start to 35% by June. This increase, however, mostly came due to the collapse of Terra USD (UST), which made investors jump to USD Coin as it was a safer, more regulated stablecoin.
After hitting a peak of 37% in July, the crypto observed some decline that has taken its marketshare to just 33% today. In the last 30 days alone, USDC’s market cap has dwindled by 5.5%.
While in this same period, USDT has rather observed an increase of 1%. USD Coin losing its pace recently means that it’s unlikely to overtake Tether in the time remaining before this year’s end.
A stable that has made some remarkable progress during this year is Binance’s BUSD, which has improved its share from 9% in January to 14% now.
At the time of writing, Bitcoin’s price floats around $19.3k, up 1% in the last seven days. Over the past month, the crypto has lost 1% in value.
The below chart shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have surged up a little over the past day or so | Source: BTCUSD on TradingView
Featured image from CoinWire Japan on Unsplash.com, charts from TradingView.com, Arcane Research