Report: Tether Dominates 98 Percent of Stable Coins Daily Trading
Despite the controversies surrounding in it, Tether continues to dominate other stable coins to become the reference stable coin in the cryptocurrency report, the newly published report reveals.
The report titled The State of Stable Coins as a firm from Luxembourg discovered that 98 percent of the total stable coins daily trading volume is dominated by USDT. To put things into different perspective, it equals roughly the 60 percent of Bitcoin’s daily trading volume.
Currently, all of the stable coins combined market cap is approximately around $3 billion, which is roughly equals around 1,5 percent of the entire cryptocurrency market.
Tether also made the difference on the exchange listings. Tether was listed on six Tier-1 exchanges, as True USD managed to list on 5 different exchanges. Steem Dollar managed to get 4, NuBits 2, BitBay 2, Gemini 2, Paxos 2, Numins 1, Statis 1 and Hello Gold 1.
The report also categorized stable coins about how they are backed like money, gold or any other algorithms. The report reveals the algorithm backed stable coins were more popular across the investors. Stable coins like Nu Bits raised around 50 percent of the all of stable coin projects combined, which is a proof of how algorithm backed stable coins seen around the investor community.
Stable coins backed by money or gold on the other hand, has only managed to raise 41 percent of the entire projects combined. Crypto pegged stable coins completed the report with the 9 percent of total money raise from the capital.
Which Countries Are the Favored Locations?
The report also found out that the United States and Europe were the most two popular locations for stable coin project’s teams to launch their projects. In the U.S, we can see 19 teams currently working for the develop stable coins and Europe also is a home of 13 stable coin teams.
Within Europe, United Kingdom is a home to three projects while Switzerland tops the list five teams. Also, Euro pegged currency, STATIS is based on Malta, already known as ‘Blockchain Island’.
For the money from, 66 percent of all stable coins projects pegged to US dollar.