Tether which is also known as RealCoin stands out among its rivals even though the criticisms of opaqueness and centralization leveled against it.
The State of Stablecoins report, that made by Blockchain Luxembourg SA ,shows us Tether is the most used stablecoin in total daily trade with approximately 98% rate. Also Tether amounts to approximately 93% of the market cap of all stablecoins. Recently, the combined market capitalization of all stablecoins is almost 1.5% of the entire cryptocurrency market and this is approximately US$3 billions.
Tether has the highest number in the list of Tier-1 exchanges among all stablecoins. Tether was listed on 6 Tier-1 exchanges compared to TrueUSD’s 5, SteemDollar’s 4, NuBits’ 2, BitBay’s 2, Gemini’s 2, Paxos’ 2, Numins’ 1, STASIS’ 1 and HelloGold’s 1. There are 50 stablecoins exchanges list and 46 of them include Tether.
The report categorized stablecoins as either backed by traditional collateral, cryptoassets or algorithmic-backed. Traditional collateral includes fiat currency-backed, gold-backed or a mix of the two. All of three are secondly the most popular among investors. NuBits which is an algorithmic stablecoin raised approximately 50% of the total funding directed to stablecoins which was around US$174 millions. On the other hand, traditional collateral-backed stablecoins increased 41% of venture funding, this equals US$144 millions. Crypto-collateralized stablecoins increased 9% of the venture funding this translated to US$33 millions.
23 in live mode and 34 in the pre-launch phase, total 57 stablecoins, were analyzed in Blockchain’s report. It shows us investors are getting more interested in stablecoins and venture funding approximately US$350 millions raised so far. Establishing funds like Andreessen Horowitz, Bain Capital Ventures, Google Ventures and Lightspeed Venture Partners raised venture funding.
The most popular locations for the project teams of various stablecoins are United States and Europe according to Blockchain’s report. Recently, there are 19 teams based in United States and 13 teams in Europe. Switzerland is the most popular location with 5 projects located and United Kingdom is the second with 3 projects in Europe. If we consider the legal domicil of stablecoins United States is the legal home of 10 stablecoins while Switzerland is 7.
However, it is reported that Puerto Rico based financial entity Noble Bank is sale for $5 to $10 millions by Bloomberg and an anonymous source claimed that Noble abandoned its best clients the Tether company and Bitfinex. Bloomberg also reported an anonymous source mentioned Noble Bank still has a banking license in order to operate as an international financial company in Puerto Rico. This is the basis for the selling price tag.
News about troubles of Tether banking increased fears of a fast-unraveling of the most influential dollar-pegged coin on the markets. Selling USDT as cash on Kraken is used as an illustration. Selling USDT for USD usually sees the significant price fall as low as $0.89 on Kraken. In general USDT keeps its dollar peg and it is vulnerable to a run from investors. Actually, official withdrawals of Tether from the website are so slow and expensive, they are hardly ever used as a fiat off-ramp. It would have been serious affects over the markets if a Tether-based crisis occurs because more than 21% of total volumes for all coins and tokens are made up of USDT pairings. A value loss would wipe out a multitude of assets that until now have performed pretty well.
Thus far, neither Bitfinex nor Tether have commented about the issue and everything is same in the crypto space. The stability of USDT trading is hard to overcome asset is ubiquitous in creating dollar-like prices for assets.
Since June 25, USDT tokens have remained stable, with no new large tranches minted. Instead, the Tether treasury had periodic injections into Bitfinex, where users noticed bot behavior coincided with spikes in the price of Bitcoin (BTC). There are doubts about how much USDT affects prices directly. its importance cannot be underestimated.
Blockchain’s report underlines that most used stablecoin Tether is at the forefront of market. Tether has greatest trade rates while market volume of stablecoins was increasing day by day. Even though there are some negative speculations about it so far there are no dramatic changes in the market.