Tether (USDT) is, by far, the leading stablecoin in the entire cryptocurrency market. With a market capitalization of some $4.6 billion, it now consistently boasts higher trading volume than even Bitcoin (BTC).
However, recent metrics show that other stablecoins are now catching up.
TrueUSD and USD Coin Trading Volumes Spike
Since the start of the year, there has been a major surge in trading volume across Tether’s many competitors. Two stablecoins, in particular, have seen the largest increases — TrueUSD (TUSD) and the Coinbase-backed USD Coin (USDC).
As shown by Unfolded (@cryptounfolded), the surge began at the start of the year. Both TUSD and USDC are now boasting daily trading volumes well over $1 billion.
— unfolded. (@cryptounfolded) February 27, 2020
Binance’s Stablecoin is Lagging
However, one major stablecoin has failed to gain traction — Binance USD (BUSD).
The stablecoin, backed by the world’s largest exchange, has struggled to keep up with its competitors — despite Binance boosting its liquidity in recent months. Days ago, BeInCrypto reported that another $10M BUSD was issued to calm markets.
However, trading volume and liquidity remains low. In September 2019, for example, someone was even able to purchase Bitcoin on the BTC/BUSD trading pair for just $1,800.
Could Tether Lose Its Position in the Market?
Although Tether’s many competitors are seeing a rapid rise in trading volume, they are still far behind. At the time of writing, Tether currently has some $72 billion in daily trading volume. Therefore, its competitors still only represent a tiny fraction of the stablecoin market.
Still, one cannot deny that USDC and others are trying to position themselves as viable alternatives. The Coinbase-backed stablecoin, for example, has been busy this month — minting more USDC for circulation. For example, BeInCrypto reported on February 19 that its treasury minted $10M USDC to enter the market. Just days earlier, USDC Treasury minted another $10M.
We likely won’t see any competitor eclipse Tether in 2020 but the race is heating up for the coming years ahead. Perhaps we will see a new stablecoin leader sometime in the not-so-distant future.