Tether or commonly known as USDT is witnessing hard days as the asset is losing the trader’s confidence. Ever since the liquidity crisis had made huge rounds in the recent past, stablecoin has witnessed a drastic drop in activity. On the other hand, another stablecoin, the USD Coin(USDC) quickly entered the top 10 and is on the verge to surpass USDT anytime from now.
Therefore, it would not be inappropriate to cite that USDT is losing dominance to USDC as more traders shift their focus from USDT to USDC. Since the beginning of this month, addresses holding no USDT or ZERO USDT have seen an increase. This implies the loss of confidence among traders as USDT was once considered a safe haven during times of enormous volatility in the space.
Additionally, the whales also appear to have dumped a huge share of their USDT holdings. As the address holding USDT within the range of $100K to $10 million has registered a huge plunge, recording 3-year low levels in terms of supply held.
On the other hand, the supply on the exchanges has increased by-let. While USDT reserves on exchanges were around 8 billion since the start of 2022, after the stablecoin lost its peg in May, reserves began to swell sharply. Currently, the supply on the exchanges has reached its peak reaching 13.14 billion, which is expected to continue to increase until it reaches new highs.
The top crypto exchange Binance which held more than 2 billion USDT tokens has also witnessed a huge inflow in the past month. The platform has recorded an inflow of nearly 560 million in the past 30 days and more than 313 million in the past 7 days alone.
Overall, Tether (USDT) dominance has been shaken a bit as the on-chain balance is shrinking significantly. Conversely, the USDC is constantly preparing to compete fiercely for the best stablecoin and could also dethrone it in the coming days.
