The USDT issuer, Tether, has been facing stiff competition from other stablecoin providers, particularly Circle and its USDC stablecoin. Despite being the first and most widely used stablecoin in the market, Tether has been struggling to maintain its dominance.

Tether, also known as USDT, was launched in 2014 and quickly gained popularity as a stablecoin backed by the US dollar. Its main purpose was to provide a stable alternative to volatile cryptocurrencies, allowing traders and investors to easily move in and out of positions without worrying about price fluctuations.

However, in recent years, Tether has faced numerous challenges, including regulatory scrutiny and concerns over its backing by actual US dollars. This has led to the rise of other stablecoins, such as USDC, which are backed by more transparent and regulated reserves.

USDC, launched in 2018 by Circle, has quickly gained traction in the market and has become the second-largest stablecoin by market capitalization. Its popularity can be attributed to its transparency and regulatory compliance, as well as its backing by a consortium of major financial institutions.

As a result, Tether’s dominance in the stablecoin market has been steadily declining. In January 2021, Tether’s market share dropped below 75%, while USDC’s market share reached an all-time high of 13%. This trend is expected to continue as more investors and traders turn to alternative stablecoins that offer greater transparency and regulatory compliance.

In response to this competition, Tether has recently announced plans to launch a new stablecoin backed by a basket of commodities, including gold, crude oil, and rubber. This move is seen as an attempt to diversify and stay relevant in the increasingly competitive stablecoin market.

Only time will tell if Tether’s new strategy will help it regain its dominance or if it will continue to face challenges from its rivals. One thing is for sure, the stablecoin market is constantly evolving, and it will be interesting to see how Tether and other stablecoin providers adapt to these changes.