On October 15th 2018, Tether teetered far from it’s stablecoin value of $1USD to $0.85 USD.
Did everyone run from Tether? Will Tether continue to be in the top 10?
Don’t worry folks, Tether isn’t going anywhere anytime soon. Despite not having traded at a stable $1 since the crash, Tether has managed to regain most of its loss currently trading at a value around $0.99.
Tether is supposedly has each token backed with a US dollar which is what is supposed to make the coin stable. But concerns to this truth have been apparent on its claims of having fully collateralized its current token supply. While reports do now state that Tether is fully backed, concerns and speculation still surround the coin and its shared common owner of BitFinex.
Other coins are rising to this occasion. The market is hungry for a new stablecoin that’s not only stable but fully backed with no suspicion and constant requests for audits surrounding it. Since September, many new stablecoins have made their appearance on the market including Circle’s USD Coin (USDC) and the Paxos Standard Token (PAX).
The controversy around Tether is hurting its market, but helping these other stablecoins become better established. TrustToken’s TrueUSD (TUSD) and Circle’s USD Coin (USDC) have seen the greatest gain in popularity from Tethers teeter, but Tether still remains unmistakably on top.
The market is in need for more major player stablecoins, and these coins are trying to rise to the occasion. The point of stablecoins is to allow traders a way to quickly move assets between exchanges without a traditional bank. Stablecoins are also very useful as an asset that you can ‘cashout’ too if the market becomes unstable without having to pull your money from the exchange.
Who’s the next big stablecoin?
It’s hard to tell at this time. While Tether’s market capitalization has steadily declined since its teeter, most of that has been because of the reduction in Tether’s supply. BitFinex has sent 780 million USDT to a company-controlled wallet known as the Tether Treasury since Oct. 14, which accounts for much of the loss. So the change in supply hasn’t really benefited any other stablecoins.
With no real increase in market cap, exchange or transaction volume for any other stablecoins, a clear leader cannot yet be determined. The only thing that is clear, is that the markets hungry and ready for another stablecoin to surge through the charts.