• Tether (USDT) has seen a surge in dominance due to recent chaos surrounding the USD Coin (USDC) peg.
• The “dominance” of Tether is an indicator that measures what percentage of the total stablecoin supply is made up of any given token.
• The increase in Tether’s dominance has been driven by two main events- regulatory crackdown on Binance USD and the chaos surrounding USD Coin (USDC).
Tether’s Dominance Surges
Data shows that Tether USD (USDT) has benefited from the recent chaos with the USD Coin (USDC) peg, as its dominance has now hit 57.8%.
Measuring Stablecoin Dominance
The “dominance” here is an indicator that measures what percentage of the total stablecoin supply is made up of any given token. When this metric rises for a coin, it means investors are possibly rotating into that token from other stables right now.
Recent Trend In Stablecoins
A chart from Glassnode shows that Tether had been facing a structural decline since mid-2020 until the last few months, when its share of the supply started to go up instead recently. This trend illustrates the preference for Tether going up among investors currently.
Driving Factors Behind Increase In Dominance
The increase in Tether’s dominance has mainly been attributed to two events- regulatory crackdown on Binance USD (BUSD), and chaos surrounding USD Coin (USDC). As a result of these events, BUSD’s share dropped from 16% to just 6.75%, while USDC continues to be inside its 30%-33% range.
This article discussed how Tether’s dominance over other stablecoins has surged lately due to two main events – regulatory crackdown on Binance USD and chaos surrounding USDC. The data showed that its share in total stablecoin supply increased significantly as investors rotated into this token from other stables currently.