Tether Rules Stablecoin Market Despite Concerns
A report indicates that Tether is also dominating on top-tier exchanges despite queries on sustainability.
Tether Dominate Stablecoin Daily Trading
Stablecoins anchored on Tether have received a lot of criticism from key industry players. The network has been accused of not being open with many questioning tether’s sustainability for the future. However, the coin is the best performing in the market with wide margins compared to key competitors.
A recent study has claimed that about 98% of stablecoin daily transactions are powered tether. The report was released by Blockchain Luxembourg SA, a tech company. The figures indicate that 98% is almost equivalent to about 60% of transactions recorded under bitcoin’s trading capacity on a daily basis.
At the moment, Tether’s stake in the stablecoin market stands at about 93% with all coins representing a value of about $3 billion. This figure represents 1.5% of the whole crypto industry. Unlike other stablecoins, Tether is traded on most highly ranked trading platforms. All stablecoins are traded on 50 trading platforms with Tether dominating by 46.
The report looked at 57 coins both live and pre-launch mode. The report states that the appetite for stablecoins was increasing among investors. At the moment, investors have pumped into stablecoin about $350 million.
Firms like Google Ventures and Bain Capital Ventures are crediting with raising the venture capital funds. The researchers classified stablecoins as being either supported by normal collateral, crypto assets or algorithmic-backed. It emerged that investors identified more with crypto assets.
Worth noting is that about 50% of total funds were raised by stablecoins supported by algorithms to represent $174 million. Coins supported by traditional fiat money managed to contribute about 41% of the funding which is approximately $144 million. Coins anchored on cryptocurrencies raised about 9% which stands at $33 million.
Stablecoins Distribution Across Jurisdictions
Further, the report pointed out that the US and Europe were home for major stablecoin projects. The US is hosting 19 teams working on stablecoins while Europe has 13. In Europe, Switzerland has five ongoing projects.
On the debate about the original home of stablecoins, it emerged that the US is a legal base for 10 stablecoins with Switzerland having 7. Other regions with over one stablecoin initiative were Cayman and Australia. The dollar is the prominent currency used to peg by a number stablecoins standing at 66%.