Tether Dominates Stablecoin Market as BUSD Woes Deepen

• The stablecoin market has seen a significant restructuring since the FTX disaster in November, losing $12 billion in value.
• Tether has emerged as the clear winner, extending its dominance to 55% of the stablecoin market.
• BUSD woes have deepened due to issues with reserve discrepancies and an order from the NYFDS, resulting in a halving of its market share.

Stablecoin Market Restructuring

The stablecoin market has experienced a significant restructuring since November 2022 when the FTX disaster occurred, leading to a loss of $12 billion in value. In particular, BUSD’s market dominance has halved to 7%, caused by issues with reserve discrepancies and an order from the New York Department of Financial Services (NYFDS) for Paxos to cease token issuance.

Tether’s Dominance

Tether has emerged as the clear winner in this new market structure, extending its dominance to 55% of the total stablecoin market. Furthermore, Glassnode data analyzed by CryptoSlate shows that balances held on exchanges have peaked at $22 billion around mid-November 2022 before two sell-offs caused them to drop below $8 billion.

DAI’s Stability

DAI’s market dominance has remained relatively flat at 4% over these four months and is held mostly by Binance (120 million tokens out of 160 million). However, DAI on exchanges have been trending downwards since May 2022 and are heading back towards late 2020 levels.

USDC Gains Ground

USDC has seen net benefits from BUSD’s downfall with its current dominance increasing to 34%. Its balance held on exchanges is currently near April 2022 highs; 5 billion USDC are held on Binance while 645 million are held on Crypto.com.


Overall, Tether remains firmly entrenched as the leading stablecoin in this ever-evolving cryptocurrency landscape despite long-running suspicions about its ability to meet liabilities. With other tokens such as USDC also gaining ground, it will be interesting to see how this dynamic shifts within the coming months.

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