Tether loses some market share

According to a new report by CCData, the stablecoin sector, which provides an important link between the traditional and cryptocurrency markets, has again dropped in total market capitalization. The report also reveals that Tether, the main stablecoin issuer, has lost some of its market share to its competitors.

According to CCData, the combined market capitalization of all stablecoins fell 0.4% in August to approximately $125 billion, the 17th consecutive month. The report attributes this trend to low transaction volumes and declining activity in decentralized finance (DeFi), which relies heavily on stablecoins for lending, borrowing and swapping.

The market cap of Tether, the largest and most widely used stablecoin, fell 1.2% to $82.9 billion in August. “While it is premature to say whether the market cap of stablecoins has finally bottomed out, there are encouraging signs that point to some capital inflow,” said CCData research analyst Jacob Joseph.