While Tether (USDT) is currently the most popular stablecoin by far when it comes to trading volume and market capitalization, the latest Exchange Review from CryptoCompare shows that other stablecoin projects such as USD Coin (USDC), Paxos Standard (PAX) and TrueUSD (TUSD) have gained modest ground in the last few months, reducing USDT’s market share in monthly Bitcoin (BTC) volume traded into stablecoins from approximately 98% in July 2019 to 92% in March.
The price of Bitcoin is currently sitting at $7,002, having largely recovered from the “Black Thursday” crash of March 12. Although some traders point to a possible pullback, USDT’s growing supply may signal more buy pressure, a somewhat bullish sign for Bitcoin, although investors may also be looking to get exposure to the USD through crypto.
Crypto market data. Source: Coin360
USDC and PAX are stablecoins issued by Circle and Paxos, respectively, and both are pegged to the United States dollar. All three stablecoins leverage the Ethereum blockchain, but both USDC and PAX are far younger than USDT.
Nevertheless, both stablecoins have become increasingly popular in recent months, with USDC representing approximately 5% of BTC volume into stablecoins and PAX with 2.5%.
Monthly Bitcoin volume traded into stablecoin. Source: CryptoCompare
USDT still dominates stablecoins and fiat
While USDC and PAX have gained some market share over the last few months, especially in February, the BTC–USDT pair still represents the majority of BTC traded into stablecoins with an overwhelming 92% of the volume, approximately.
Not only is USDT the most popular pair for Bitcoin among stablecoins, but it’s also the most popular pair across the board. Although the U.S. dollar pair saw a spike of around 170% in March due to the COVID-19 outbreak, USDT saw a much more accentuated spike, tripling in volume.
USDT saw over 21 million BTC in volume during March and now represents 73% of total BTC traded into fiat or stablecoin.