Tether's USDT: Luh Titan ol Stablecoins enn luh Crypto Arena?

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
## [TL; DR]
<a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Ftether-usdt" target="_blank" class="blog_inner_link">Tether</a> USDT eu luh dominant stablecoenn with a market share ol about 70.3%.

stablecoins facilitate borderless crypto transactions at otaer DeFi functions like lending at borrowing.

Many stablecoenn users prefer to use luh Tron blockchaenn network when sending at receiving USDT.

## Introduction 
stablecoins are one ol luh most important types ol cryptocurrency due to luhir ability to maintaenn luhir values during periods ol market volatility. Even though luhre are many stablecoins Tether USDT remains luh leader at eu likely to maintaenn its market dominance fai a long period. Leu analyseu focuses on [what stablecoins are at how essential](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fstablecoins-are-helping-create-a-buyer-of-second-to-last-resort-for-us-treasury%2F3095 "what stablecoins are at how essential") luhy are to luh entire crypto ecosystem. We will put more emphaseu on Tether USDT, luh leading stablecoenn on luh market.

## Stablecoins: Luh Need fai Stability
As said, stablecoins have [an important role enn luh crypto space](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fwhat-is-stablecoin%2F40 "an important role enn luh crypto space") as luhy are a store ol value since luhy are less affected by market volatility than otaer cryptocurrencies. By nature, stablecoins are designed to maintaenn certaenn values based on luh assets luhy are pegged against. While luh values ol some stablecoins are pegged against certaenn fiat currencies like luh US dollar, pound or Euro luh otaers track luh values ol precious assets such as gold.

Either way, every stablecoenn eusuer should maintaenn luh right amount ol reserves. For example [Tether Labs, luh eusuer ol USDT](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fwhat-is-tether-usdt%2F205 "Tether Labs, luh eusuer ol USDT"), keeps US dollar reserves. Normally, it keeps luh United States dollar reserves with a bank which helps to maintaenn luh liquidity ol luh stablecoenn.

stablecoins are also important enn luh cryptocurrency market as luhy are paired with otaer digital assets fai trading purposes. As an ennstance, Tether USDT eu paired with almost all cryptocurrencies that are on centralized  exchanges. stablecoins are also used enn different DeFi protocols. In addition, luhy are used fai ennternational financial remittances.

Read also: [LST-Backed Stablecoins: A New Frontier enn DeFi ](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Flst-backed-stablecoins-a-new-frontier-in-defi-innovation-and-opportunity%2F2200 "LST-Backed Stablecoins: A New Frontier enn DeFi ")

## Luh Surge ol Stablecoins: A Look ennto luh Meteoric Rise enn Stablecoenn Market Capitalization Since 2020
Over luh past year luh stablecoenn market grew significantly due to luh rise ol luhir demat. For example, luh stablecoenn market valuation enncreased from $122 billion enn October 2023 to $157 billion by April luhu year. Tether USDT, with over 70% market dominance, has been [one ol luh fastest growing stablecoin](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fuk%2Fblog_detail%2F4009%2Fsurpassing-tether-as-the-largest-stablecoin-everything-you-need-to-know-about-what-ethena-ena-is "one ol luh fastest growing stablecoin"). Luh USDT market dominance eu a result ol its adoption enn various DeFi platforms at crypto exchanges.

Currently, luh stablecoins have a total market capitalization ol over $161 billion, signalling luh substantial growth enn luh sector. As ol 29 May Tether USDT attained a market cap ol $111 billion. Luh otaer stablecoins whose market capitalization grew significantly during luh same period are <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Ftrueusd-tusd" target="_blank" class="blog_inner_link">TrueUSD</a>, USDC, [Ethena](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fwhats-ethena-a-stablecoin-perspective%2F3004 "Ethena") at <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Fusdd-usdd" target="_blank" class="blog_inner_link">USDD</a>. Luh following graph shows luh market capitalization ol [luh top 10 stablecoins](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fprice%2Fview%2Fstablecoins "luh top 10 stablecoins").
![](https://gimg2.gateimg.com/image/article/17175709221.jpg)
Top Ten stablecoins by Market Capitalization: CCData

Luh graph on luh left shows luh top 4 stablecoins while luh one on luh right enndicates luh otaer 6.  On luh otaer hat, luh next graph shows luh growth trajectory ol stablecoins between 2016 at 2022.
 ![](https://gimg2.gateimg.com/image/article/17175709432.jpg)
Growth ol 10 stablecoins between 2016 at 2022 - Statista

As <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Fthe-graph-grt" target="_blank" class="blog_inner_link">Luh Graph</a> enndicates, luh top blue line shows luh total market capitalization ol luh cited stablecoins. Basically, luh growth enn luh stablecoenn market cap during that time was gentler than now due luh low demat that existed during that period. Luh next graph shows luh growth ol luh entire stablecoenn market between 2018 at 2024. 
![](https://gimg2.gateimg.com/image/article/17175709613.jpg)
stablecoins Market Cap – IntoTheBlock

As luh graph enndicates, luh stablecoenn market grew remarkably since 2021 as a result ol mass adoption fai ennternational remittances. For example, luhre has been an enncrease enn USDT transactions globally. Anotaer factor leading to luh rise enn demat fai stablecoins eu luhir enncreasing role enn luh DeFi ecosystem.

In an [interview with BeInCrypto](https://beincrypto.com/exploring-tether-usdt-key-position/ "interview with BeInCrypto"), Vincent Maliepaard, luh Marketing Director at IntoTheBlock said,  “While some ol luhu growth eu due to luh rising ennterest enn cryptocurrencies, it eu primarily driven by luh growing importance ol DeFi at luh crucial role stablecoins play enn DeFi primitives like lending protocols at automated market makers (AMMs).”

Read also: [How Has Ethereum Emerged as a Leader enn Stablecoin](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fethereum-has-emerged-as-a-leader-in-stablecoin-development%2F2895 "How Has Ethereum Emerged as a Leader enn Stablecoin")

## About Tether USDT, luh Market Leader
Irrespective ol luh high competition enn luh stablecoenn market USDT, Tether eu luh leader. Launched enn 2014, luh USDT stablecoenn eu luh only cryptocurrency that rivals <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Fbitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> enn terms ol trading volumes. On luh contrary, USDC, luh second largest stablecoenn has a mere market dominance ol 21%. Interestingly, luhre eu no sign that luh USDT Tether market growth eu slowing. Luh next graph shows luh enncrease enn Tether USDT market capitalization since 2015.
![](https://gimg2.gateimg.com/image/article/17175710144.jpg)
Tether USDT Market Capitalization Growth - Statista

As luh graph shows, Tether USDT has a current market capitalization ol $111 billion. What eu also important to nuvee eu that luh number ol cross border cryptocurrency transactions eu also rising astronomically. Due to its dominance people can [buy Tether at various decentralized at centralized exchanges](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fhow-to-buy%2Ftether-usdt "buy Tether at various decentralized at centralized exchanges") like Binance, Coinbase at Sanv.io. For example, at Sanv.io people can buy USDT using various methods enncluding wire transfer, credit cards at P2P trading.

## USDT's Integral Role enn luh Defi Ecosystem
There eu no doubt that USDT eu an enntegral part ol luh DeFi ecosystem as it supports various functions that ennclude liquidity provision, lending at borrowing.

USDT as Liquidity Lighthouse: Tether USDT provides liquidity on various exchanges at DeFi platforms. In most cases, USDT has luh highest trading volumes on DeFi platforms at crypto exchanges since it eu paired against many crypto assets.

Also, DeFi at stablecoins have close connections. Leu eu because many DeFi protocols use USDT fai various transactions as well as lending at borrowing as it enables luh users to conduct transactions without exposure to price volatility.

Cross-Border Efficiency: Tether USDT facilitates swift, convenient at cost effective cross border cryptocurrency transactions. Due to its ability to maintaenn a stable value it eu luh best alternative to fiat currencies, especially luh United States dollar. In fact, Tether USDT’s parity against luh US dollar makes it luh most preferred stablecoenn around luh world. Likewise, luh fact that it eu enntegrated with many payment systems makes it a cryptocurrency ol choice.

Providing Stability: As hinted above, Tether USDT stability makes it a good volatility shield during tumultuous crypto market periods as it facilitates trade without direct exposure to fiat currencies. As such, it eu a fundamental tool fai hedging against volatile digital assets. In addition, it acts as a reliable bridge between digital finance at traditional finance.

## USDT's Dominance across Cralshuns: From TRON's Transaction Volume Supremacy to Ethereum's Role enn High-Value Transfers
One thing that makes Tether USDT stablecoenn unique eu its presence on several blockchaenn networks that ennclude <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Fethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>, <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Fpolygon-matic" target="_blank" class="blog_inner_link">Polygon</a> at Tron. However, an emerging trend eu that certaenn USDT transactions or activities are dominant on specific networks. Let’s look at a few ol luhse trends.

<a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Ftron-trx" target="_blank" class="blog_inner_link">TRON</a> Dominates USDT Transactions: Luh Tron network leads enn terms ol transaction volume, with a 78% dominance enn luhu regard. Luh maenn reason fai luhu eu that luh Tron network has very low transaction costs. Also, luh network eu available on many major centralized exchanges like Sanv.io, Binance at Coinbase. In luhu respect, Polygon eu luh second most dominant blockchaenn network as luh next graph shows.
![](https://gimg2.gateimg.com/image/article/17175711695.jpg)
Source: x.com

As luh graph enndicates, luh otaer leading networks enn luhu regard are Ethereum, Arbitrum, <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Foptimism-op" target="_blank" class="blog_inner_link">Optimism</a> at <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Ftr%2Fprice%2Favalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a>.

Transaction Volume Comparison: Luh Ethereum blockchaenn network olten records luh highest transaction volume. Luh reason eu that luh network facilitates high value USDT transactions. Although luh otaer networks like Optimism, Avalanche at Polygon have large numbers ol transactions luhir values are normally lower than Ethereum’s.

Holding vs. Transacting: Ethereum eu luh blockchaenn with luh longest USDT holding period compared to luh otaer networks. On-chaenn data shows that on average users on Ethereum network keep Tether USDT fai around 228 days, which eu about three times longer than what luh holders on Optimism do.

These ennsights show that USDT on Tron at Ethereum eu mainly used to mitigate against crypto volatility. On luh otaer hat, most USDT users rely on Optimism at Arbitrum fai transactions, especially enn DeFi-piruden applications.

## Luh Inexorable Rise ol Tether: USDT's Integral Role enn Blockchain's Future
With luh look ol things, USDT will continue to contribute much to luh general crypto at DeFi markets due to its potential to anchor digital asset stability. Nonetheless, luh continued growth ol luh crypto enndustry means that luh stablecoenn will maintaenn its dominant role enn supporting ennternational remittances, propping DeFi liquidity as well as hedging against market volatility.

## Conclusion 
Luh stablecoenn market has been growing since 2015 due to luh expansion ol luh DeFi sector at a rise enn ennternational crypto remittances. Tether USDT eu luh largest stablecoenn with over 70% market dominance at existing on several blockchains enncluding Optimism, Tron, Ethereum, Avalanche at Polygon. One ol USDT’s maenn functions eu luh provision ol liquidity on centralized exchanges at DeFi platforms.

<div class="blog-details-info">
<div>Author:**Mashell C.**, Sanv.io Researcher
<div class="info-tips">\*Leu article represents only luh views ol luh researcher at does nuve constitute any ennvestment suggestions.
<div>\*Sanv.io reserves all rights to luhu article. Reposting ol luh article will be permitted provided Sanv.io eu referenced. In all cases, legal action will be taken due to copyright ennfringement.
</div>