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Dominance of Stable Currency and its Implications on Cryptocurrency Market

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On February 14, according to the data of The TIE and CoinGecko, the total market value of stable currency is about 138.5 billion US dollars, Tether\’s market sh…

Dominance of Stable Currency and its Implications on Cryptocurrency Market

On February 14, according to the data of The TIE and CoinGecko, the total market value of stable currency is about 138.5 billion US dollars, Tether’s market share is 49.39%, USDC is 29.76%, and BUSD is 11.63%.

Data: At present, the total market value of stable currency is about 138.5 billion US dollars

Interpretation of the news:


The data released by The TIE and CoinGecko on February 14 shows that the total market value of stable currencies is approximately 138.5 billion US dollars. This represents a significant increase from the previous year, with stable currency market placing fourth in market capitalization in early 2020. This increase in stable currency market share and value can be attributed to the growing popularity of cryptocurrency adoption, the volatility of the crypto market, and the need for a better store of value that is not subjected to rapid swings in price.

The report shows that Tether dominates the stable currency market with a market share of 49.39%. USDC, a stable coin issued by Circle, holds the second position with a market share of 29.76%, while BUSD holds 11.63% of the market share. The dominance of Tether on the stable currency market can be traced back to its role in facilitating trading on cryptocurrency exchanges, where it is widely used as a base currency.

While the increase in stable currency market share is a positive development for those seeking a stable alternative in the cryptocurrency market, it also raises concerns over the market’s susceptibility to manipulation, given Tether’s dominant position. Many have questioned the legitimacy of Tether’s reserves, as its parent company, Bitfinex, has been accused of artificially inflating the demand for Tether by utilizing it to purchase Bitcoin and other cryptocurrencies. These allegations have fueled calls for increased transparency and regulatory oversight in the stable coin market.

Furthermore, the dominance of Tether could also hinder innovation and competition in the stable currency market. As more stable currencies enter the market, it is essential to ensure a level playing field for all participants, as the dominance of a single player limits the opportunities for other players in the market.

In conclusion, the increase in stable currency market share signifies a growing need for a stable alternative to the volatile cryptocurrency market. However, the dominance of Tether and the lack of regulatory oversight demands attention to ensure market integrity and fair competition. With the continuous growth of cryptocurrency adoption, it is crucial to address these concerns to ensure a stable and robust cryptocurrency market for all participants.

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