It’s been an interesting several months for Tether, the world’s largest stablecoin by marketcap.
Following a massive fluctuation in Tether’s price this October, Bloomberg reported that Tether appeared to be solvent–an extremely positive piece of news for the company, whose solvency has been in doubt for over a year.
Discover iFX EXPO, Your Gateway to Asian Markets!
Still, the price dip in October managed to do some serious damage to the company and its coin. A recent report from research firm Diar claimed that Tether’s dominance in the stablecoin market had sunk below 70 percent for the first time.
Perhaps the most important question that arises from this statement is this: is Tether losing popularity, or is the stablecoin market as a whole continuing to grow while Tether stays the same?
There is some data to suggest that the former rather than the latter, although it is definitely true that the stablecoin market has grown as a whole–Diar reported that total stablecoin kicked off 2019 at $2.2 billion, almost double of the $1.3 billion total market supply at the beginning of 2018.
The Trouble Really Started with the Price Dip in October
Tether’s dominance took a major hit in October when its value suddenly took a dive from around $1.00 to as low as $0.85 on some exchanges. It took weeks for the coin to recover to its target value of $1.00.
Regulated stable coin, lol pic.twitter.com/5SRMhhh32Y
— CZ Binance (@cz_binance) October 13, 2018
Certainly, these two announcements are good news for the company. But will Tether’s attempts to turn itself around be fruitful?
Only time will tell.
bestadmin
