Binance CEO Changpeng “CZ” Zhao highlighted how Tether’s USDT has grown amidst the issues plaguing its rivals.
In a March 21 tweet, Zhao described how Binance USD (BUSD) was forced to stop other mints despite being regulated by the New York authorities and audited by “big audit firms.” According to him, BUSD was “the most fiat-backed stablecoin,”
The Binance CEO further mentioned how the recent bank issues involving crypto-friendly banks like Silicon Valley Bank and Signature Bank affected USD Coin (USDC). He added that:
“USDC is shrinking in market cap too due to bank closures.”
USDT supply nears 80 billion
Following the issues plaguing rival stablecoins, USDT’s supply has grown by more than 10% in the last 30 days to $76.97 billion, according to CryptoSlate data.
For context, on-chain sleuth Lookonchain said Tether minted 5 billion USDT tokens on Tron and Ethereum blockchain networks in the past seven days. It coincided with a period when USDT’s supply reached a ten-month high, and its market dominance rose to around 58%.
Besides USDT, TrueUSD (TUSD) grew massively in the last 30 days. During the period, the little-known stablecoin enjoyed massive adoption — pushing its supply beyond 2 billion for the first time.
Binance also moved its zero-fee Bitcoin (BTC) trading from BUSD to TUSD on March 22. The exchange added that it was adding TUSD to its Secure Asset Fund for Users (SAFU).
USDC and BUSD decline triggered by US-specific challenges
Meanwhile, USDC and BUSD’s supply have declined by more than 15% and 38% in the last 30 days, respectively, according to CryptoSlate data.
Although the reasons for these decreases differ, challenges facing the stablecoins could be tied to issues emanating from the U.S.
While regulatory actions triggered BUSD’s decline, the collapse of crypto-friendly institutions negatively affected confidence in USDC — resulting in its earlier debugging.
Since these events, crypto investors have increasingly preferred USDT and other stablecoins.
Lyn Alden’s investment firm founder, Lyn Alden, pointed out that the U.S. authorities’ reluctance to “allow and formalize stablecoins domestically has increased market share for offshore stablecoins.”