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In The Battle Of Tether And USDC Will Emerging Asset Classes Such As NFTs, DeFis, Metaverse, And DAO Steal The Game?

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Jan 18, 2022

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Highlights

    Tether continues to ebb in dominance amongst fellow stable coins, while USDC rises against the market leader.

    Merchants from the business part ways with stable coins for emerging digital assets.

The stablecoins have been an integral part of the world of cryptocurrencies. The business has been home to a host of stable coins, which have been a medium for transacting mainstream digital assets. And a store of value for extracted profits in times of bear’s rule. 

Like mainstream cryptos, the brawl for higher market capitalization persists in stable coins as well. While the leader of stable coins ebbs in dominance in view of external factors, and rivals. The merchants from the business explore newer digital assets in replacement to stable coins, for vivid cases.

Is Tether On The Threshold Of Losing Its Dominance? 

Tether’s dominance has been ebbing at a constant rate in the stablecoin space. From holding on to its dominance at about 75%, to the current rate of 50%. While the numbers are still in favor of the coin, the steep decline is a growing concern. The diminishing dominance of Tether has been fueled by factors such as lack of clarity in backing the asset and growing rivals.

Meanwhile, USDC is a growing contender to Tether, with its praisable adoption rate. Moreover, USDC coins are minted in the presence of a center, where USD needs to be transferred from a bank prior to the mint of any amount of USDC. USDC also undergoes a monthly audit, which keeps track of the issuance. Which makes USDC less prone to probes by the government.

Are Stable Coins At Threat?

Stable coins hold an imperative presence in the crypto business, as these are primary pairs for crypto trades. Moreover, these have been used as a store of value for extracted profits. However, changing times and perceptions of traders has been resulting in traders parting ways with stable coins wherever possible. The plausible regulatory crackdown on stable coins has always been a concerning threat.

Since the world of cryptos, is witnessing a shift from mainstream crypto assets. To the diverse offerings from the industry, that includes NFTs, DeFis, metaverse, and DAOs. In succession, the need for stable coins has been decreasing gradually, as traders have been opting for the native tokens of the underlying protocols of such assets to make transactions. 

Moreover, digital assets such as NFTs, metaverse projects, DeFis, and DAOs are emerging as potential investment options. To store the extracted profits, as these are less prone to market sentiments, regulatory actions, amongst others. In addition, these assets have been outperforming mainstream assets in numerous fronts. 

In conclusion, with stringent norms in the pipeline, we can expect stable coins such as Tether employing an evident form of token issuance. And stable coins would continue in trades, as these are prerequisites for trade in several exchanges. On the contrary, the escalating prominence of diverse assets is overwhelming for the entire business class. 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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