USDT News: Tether Faces Rising Competition from Banks as They Eye Stablecoin Launches
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The cryptocurrency landscape is evolving rapidly, with new players entering the market and shaking up the established order. In this latest development, Tether, the issuer of the popular stablecoin USDT, is facing increasing competition from major banks that are considering launching their own stablecoins. Here’s a closer look at the situation and its implications for the future of stablecoins.
Tether and Circle Face Rising Competition from Banks Eyeing Stablecoin Launches
Tether and Circle, the dominant stablecoin issuers with USDT and USDC respectively, are facing increasing competition as major banks consider launching their own stablecoins. These regulations also pose challenges for their business models. According to a PitchBook report, the top 10 stablecoins have a combined market capitalization of approximately $220 billion, with Tether accounting for about 65% and Circle’s USDC holding another 25%. Fiat-backed stablecoins make up around 95% of the total supply.
Latin America’s Crypto Adoption Up 12% in 2024, 38% Hold 3+ Coins
Cryptocurrency adoption in Latin America has risen by 12% in 2024, with Bitso reporting a growth in clients. Notably, 38% of users now hold at least three different cryptocurrencies, showing a preference for diversified investment strategies. Stablecoins such as USDC and USDT have gained popularity due to economic challenges, with 39% of total crypto purchases in 2024 being in stablecoins. Bitcoin, among other coins, is also mentioned in the context of the report.
USDT Flows Hit 6-Month High Amid Bitcoin Drop - Potential Buy Signal?
USDT on-chain activity has surged, with 143K wallets making transfers yesterday, the highest in six months. This spike in activity aligns with a market-wide price drop, hinting at potential trader accumulation. Historically, a surge in Tether network activity has preceded Bitcoin rallies. With the crypto market losing over $200 billion, could this be an ideal buy time before the next bull run?
