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With the start of 2018, with only two competitors, Tether had 94% of the stablecoin market. With the year that saw the emergence of 8 new players in space, this dominant position fell to 74%.
Flood waters
It seems that the cryptocurrency of the day is the US dollar, or at least the stablecoin are. This year saw a wave of new offers pouring into the market, allowing exchanges to re-evaluate how to list them.
Huobi added his stablecoin to the fray, with the launch of HUSD. This is interchangeable with and amalgamates Paxos, TrueUSD, USDCoin and Gemini Dollars, allowing deposits and withdrawals without conversion fees.
Binance has also introduced changes, to clearly identify the markets with stablecoin pairings.
Chip Chip Chipping Away
By forgetting the main figure, 74 percent is still full of three quarters of the market, which is quite significant. On average, each new competitor has eroded less of Tether's market share than the two original ones.
At the beginning of the year, only 3 stablecoins were traded, with Tether holding 94% of the exceptional stablecoin market offering. Competition increased with at least 8 new contenders who reduced Tether's dominance to 74% at the end of November.
In the issue of this week: https://t.co/a8TVJDpdA1 pic.twitter.com/5aCzF7x10k
– Diar (@DiarNewsletter) 5 December 2018
Which illustrates the value in this case of being the first on the market, compared to the comparative value of your product. Despite the constant criticism and scrutiny of Tether, it maintains a market share for which its competitors compete.
Stablecoins are not going anywhere
Stablecoins are certainly divisive. The claimed benefits are questioned each time they are praised. Am I just the answer to a problem that no one has ever had in the first place? Or are they a necessity in the evolution of the crypt?
In any case, they are fast becoming a fixture in crypto-news and shape the current crypto-landscape. As more and more players continue to move to the market, the stablecoin is clearly the current craze of the nascent industry that in 2018 fought against the USD.
What remains to be seen is the continuous impact of this on Tether. Will every new project continue to tease its market share? Would a wanted young man find enough popular support to launch a serious uprising and eventually usurp the king? Or will the overcrowded crowd of hungry contenders start cannibalizing each other's piece of cake?
Images courtesy of Shutterstock, Twitter
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