Is USDT’s Position As The Most Preferred Stablecoin Up For Grabs?
The most popular stable coin in the cryptocurrency space, Tether USDT, has struggled to uphold its reputation as most other stablecoins surpassed it as the year comes to a close.
Other Stablecoins Surpass USDT In Trade Volume
The USDC, which had trailed behind the USDT stablecon in terms of trading volume, has been observed to overtake the USDT as the year comes to a conclusion.
It was noted that the entire trading volume for stablecoins reached a considerable milestone above all past years, despite the overall market instability caused by crashes and liquidations this year. Compared to other years, it reported a higher trade volume.
In the United States, the total recorded traded volume for all stablecoins this year was over $7 trillion. However, looking at each one separately, the same cannot be said about the USDT.
The highest stable coin, USDT, underperformed this year.
From over $3 trillion in USDT transfer volume In 2021 fell by 200 million this year. Additionally, the trade volume collapsed to 3.5 million.
On the other side, USDC filled up the blanks left by USDT, accumulating more than 60% of the total transfer volumes reported for all stable coins.
While just 18% of the transfer volume was captured by USDT.
What Is The Cause OfThis Decline?
Many speculate as to what could have actually led to the decline in performance of the USDT stable coin.
This happened as a result of the stable coin’s lack of and inadequate social promotion. There was hardly any social media coverage.
According to reports, USDT’s social mentions decreased by 13.5%, and at the same time, its social engagement and publicity decreased by over 20%.
Along with this low level of social exposure, the stablecoin was the subject of a lot of FUD and rumors concerning its stability.
Nevertheless, once it started to pick up a little bit, the coin still managed to subtly gain the community’s favor.
The data analysis firm Santiment demonstrated that this December, USDT responses took a negative turn. But eventually, it started to move in the right way.
However, despite this turn for the better, its networks had already begun to deteriorate, with numerous networks recording new lows and dips.
This showed that the USDT market activity had drastically decreased.
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