CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » The Stable Coins Revolution: Tether’s Dominance Had Dropped To a Three Years Low 

The Stable Coins Revolution: Tether’s Dominance Had Dropped To a Three Years Low 

Author: Toju Ometoruwa

Last Updated Dec 10, 2018 @ 21:24
Getting your audio player ready...

2018 has been a big year for the stablecoins, as many alternatives to Tether have begun to launch and are now available on most popular exchanges.

These include TrueUSD, USDcoin, Paxos, Gemini’s GUSD and more. Each new coin has emerged with an aim to increase the level of transparency in the stable coin market, something that Tether has been notorious for failing to provide over the years.

As a result of this space, which is becoming more crowded, Tether’s dominance over the market has predictable weakened, from 96% before October 2018, to 73% in December.

tether_dominance1-min

TrueUSD, USD Coin and Paxos now all have a circulating supply north of $170 million while Gemini is trailing with nearly $85 million.

stablecoins2-min
Source: Coinmarketcap

Although the idea of multiple stable coin options may seem redundant, they actually serve an important market function by reducing the overall risk of one stable coin failing to stay pegged to the USD. Smart investors who want to keep their crypto pegged to the USD will most likely divide it amongst 3 or 4 stablecoins to manage the risk of one coin experiencing volatility for whatever reason.

The need for alternative stable coins was made very apparent when Tether experienced a 2.1% decline to the US dollar, causing rival stable coin TrueUSD to experience a 4% increase when paired with Tether. It was most likely not a coincidence that this was also the time when Tethers dominance over the stable coin market dropped from 96% to 73%.

What’s also very interesting to observe about Stable coins is the positions that each hold on the crypto’s Coinmarketcap list:

  • Gemini is #48 with a market cap of $88 million
  • Paxos is #28 with a market cap of $178 million
  • USD coin is #26 with a market cap of $194 million
  • TrueUSD is #25 with a market cap of $209 million
  • Tether is #8 with a market cap of $1.8 billion

This means that we have a combined market cap of $2.46 billion for the top 5 stable coins, which places the total value of these 5 stablecoins at #4 behind only Ethereum, XRP and Bitcoin:

stablecoins3-min

Since all of these stable coins are pegged 1-to-1 with the US dollar,  this data is an indicator proving the demand for US dollars among crypto investors. The bear market is likely a significant contributing factor to the rise of stable coins, and we can anticipate that a bull run would push their combined market cap a lot further down as investors would feel more confident in placing their funds back in cryptocurrencies that are experiencing upward volatility.

tether_history_scandals
The history of Tether’s scandals
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Toju Ometoruwa
More posts by this author

Toju Ometoruwa is a Northeastern University alumni who is the co-founder of Pazima, a start-up that provides secure lending options for low-income workers. His passion is to empower communities across the African diaspora through the blockchain.

Join Our Community

FacebookX YouTubeTelegram


Editorials
How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

11 Best Meme Coins to Watch in June 2025

11 Best Meme Coins to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in June 2025

11 Best Crypto Presales to Consider in June 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!