The sand is shifting in a stable currency ecosystem as the dollar quickly loses dominance to Tether, the sector leader.

According to a February 1 Glassnode report, the US dollar rose more than 112% on stock exchanges in January alone, from $ 431 million to over $ 915 million.

Almost one billion new US dollars have been minted since the beginning of the year, more than 90% of which was sent to central exchanges.

Glassnode suggests that traders plan to fill tokens to buy the upcoming dips in the cryptocurrency markets, with nearly half a billion USD on their way to exchange within one month:

“This higher reading should boost investor confidence in any rapid drop in buying, which will be an optimistic signal.”
USDC’s gains in January may have been boosted by Circle’s introduction of a fixed currency bridge to enable seamless transfers from USDC to USD last month.

According to company statistics, access to Circle Stable Coins has increased by more than 900% since the beginning of 2020, from 500 million to 5.1 billion.

In contrast, the number of titles in circulation increased by about 500% over the same period. However, the recent increase in capitalization of Tether is more than four times the value of the mandatory growth of USDC over the past 13 months.

The third largest stable currency in circulation is MakerDAO’s Dai, which has grown by a whopping 3,800%, from $ 40 million in January 2020 to over $ 1.6 billion today. Binance’s stable currency, BUSD, also saw significant gains with a 600% increase in supply over the same period with $ 1.4 billion in capital.

Coin calculates that with the recent growth of competitor stack coins outpacing the growth of Tether, the dominance of USDT stack coins fell below 75% for the first time.

The decline in Tether’s stablecoin market share may be due in part to the company’s ongoing legal issues with the New York attorney general, which could prompt traders to seek alternative stable tokens to protect against the risk of losing USDT on their pins during the process. … Tether has lost currency several times over its recent history, dropping to $ 0.96 on January 5, 2021 and October 2018.

Rope could come under more pressure if US lawmakers pass a new “stable law.” If approved, the bill would require stable issuers to obtain a certified banking license, go through a Federal Reserve audit, obtain insurance, and possibly store assets with the Federal Reserve.

Source: CoinTelegraph