Who is Holding the Buck?

ByteTree Market Health Updated; Issue 41

Tether (USDT)

US dollar stablecoins collectively represent $16.8 billion, of which the market leader, Tether, holds $13.5 billion. Tether was released in 2014 as a Santa Monica start-up and it is safe to say that it is the market leader. Like everything on the internet, the winner takes all. Tether is the most liquid stablecoin and has over 2,000 trading pairs across a wide range of assets.

Tether peg to the US dollar

USD Coin (USDC)

Tether’s main competitor is USD coin, also known as USDC. It was created in early 2019 by the Circle group, with backing from Coinbase, which brings credibility and makes it more popular among institutional investors. Despite having a much smaller issuance of $1.4 billion, it claims to be the most used stablecoin across the digital asset ecosystem, with $90 billion of transactions to date and 463 trading pairs.

Holding the buck

Ethereum’s Rally

We highlighted Ethereum’s strength in July, and since then it has surged. It recently made a two-year high as tokenization has returned to the limelight, with ERC-20 tokens at the forefront. One difference from 2017 is that this time, it’s not ICOs, but DeFi.

Ether has caught up with Bitcoin

Network Demand Health Model

The network health score stands at 5 out of 6, which is in line with last week.

Summary

As this DeFi movement continues, it is inevitable that stablecoins not just service crypto, but traditional assets as well. It has already begun, but there is so much more to be done. You can already buy the likes of Tesla, but I suspect the next move will see exotic metals, real estate, the long bond and a wide range of funds on offer.

Applied data for digital asset investors. ByteTree provides real-time data, fundamentals, technical and deep blockchain market analysis for Bitcoin, and more.

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