Market Share Decline
According to Kaiko Analytics, Tether (USDT), the leading stablecoin, has seen its market share on centralized exchanges (CEXs) drop by 13% this year. This decline is attributed to the rise of competing dollar-pegged assets like FDUSD and USDC.
Growing Competition
- FDUSD: Binance’s zero-fee promotions have boosted FDUSD’s popularity.
- USDC: Regulated under US state money transmitter frameworks, USDC has gained market share, signaling a preference for regulated alternatives.
Innovative Rivals
- Ethena (USDe): This yield-bearing stablecoin has gained traction since its launch in February.
Tether’s Performance
Despite the market share decline, Tether reported record-breaking profits of $4.52 billion in the first quarter of 2024.
