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Tether’s Grip On Stablecoin Market At Risk As Regulated Rivals Gain Momentum – Here’s Why
The stablecoin landscape is on the verge of experiencing a transformative shift, as regulated rivals gain momentum and pose an existential threat to Tether’s dominance. The tide has turned in favor of newly emerging players who have been successful in addressing concerns around transparency and regulatory compliance.
Despite being the largest stablecoin issuer with a market capitalization of $159.58 billion, Tether’s grip on the market is at risk due to its reluctance to adapt to evolving regulations. Instead of embracing change, the firm seems more focused on maintaining its current market share by leveraging its large user base and brand recognition.
However, regulated stablecoins like RLUSD are not only adapting to regulatory demands but also providing robust infrastructure for institutional investors. In doing so, they have been able to gain traction in the market, slowly chipping away at Tether’s once-insurmountable hold on the sector.
One of the primary reasons behind this shift is the growing demand for transparency and regulation within the crypto world. As a result, institutions have become increasingly wary of unregulated stablecoins like Tether that lack clear visibility into their underlying assets.
The recent report by SMQKE underscores this notion, highlighting how USDT’s dominance may slowly fade away in favor of regulated alternatives. The researcher suggests that RLUSD will likely surpass USDT as the market leader due to its strong institutional alignment and adherence to regulatory requirements.
Moreover, other stablecoins like USDP, PYUSD, USDG, and RLUSD are steadily encroaching on Tether’s territory by providing a more robust, transparent infrastructure for investors. This growing preference for regulated stablecoins is poised to have far-reaching implications for the cryptocurrency market as we go forward.
In conclusion, it remains uncertain if Tether will be able to maintain its position in the market or succumb to the pressure of emerging competitors.
Source: bitcoinist.com
