Bitcoin is losing popularity: over 70% of trading pairs are in USDT

CONTENT

  • Bitcoin lost its leadership in the number of trading pairs on the market

  • Tether accounts for about 70% of all crypto pairs

  • The dominance of USDT in the market will remain for a long time, the analyst of The Block believes

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Bitcoin is less and less featured in trading pairs on cryptocurrency exchanges, in contrast to the well-known stablecoin Tether (USDT)

The largest stablecoin by market capitalization Stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market. With … More Tether (USDT) has taken a significant share of trading pairs, overtaking Bitcoin, ETH and other altcoins combined. This is the conclusion reached by the head of the analytical department of The Block Larry Kermak.

Bitcoin vs Fiat Profit Dilemma – Why the Bitcoin trade pairing matters

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According to Kermak, in 2020, about 70% of all trading pairs on the cryptocurrency market are USDT. In terms of trading volumes, stablecoin overtakes Bitcoin, Ethereum (ETH), Binance USD (BUSD), USD Coin (USDC) and other digital finance assets combined.

Source: twitter.com

However, this was not always the case. USDT’s popularity has skyrocketed after the famous cryptocurrency rally in 2017. According to Kermak, in the first quarter of 2017, USDT was involved in only 5% of trading pairs, bitcoin accounted for almost 50% of the total volume. Another 40% went to fiat (US dollar).

Kermak believes that given the popularity of USDT in the cryptocurrency lending market, stablecoin has gained a foothold in the cryptocurrency market for several years to come. The only thing that could shake Tether’s position is regulatory intervention.

Herald of transcendental commissions

At the time of this writing, the market capitalization of Tether exceeds $ 15.7 billion. The asset itself, according to the analytical web service Nomics, appears in 19,796 trading pairs (of which only ~ 1000 have a turnover of more than $ 100).

Bitcoin is losing popularity: over 70% of trading pairs are in USDT

Source: coinmarketcap.com

The rise in popularity of USDT began after the stablecoin issuer added support for the ERC-20 (Ethereum) protocol. Prior to this Token As the use of cryptocurrencies increases, new types of tokens appear. They can represent value or something intangible like voices. Two … More was based on the bitcoin blockchain and had too high a threshold for potential users to enter.

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Should YOU Trade with BTC or USDT pairs?

After the introduction of ERC-20 support, the hype of decentralized finance (DeFi) began. the most used asset, first for collateral in crypto loans, and then for investing in DeFi startups.

The activity of USDT based on Ethereum has even led to an increase in commission costs, but commissions, for the most part, reached their apogee due to the popularity of DeFi tokens.

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Bitcoin is losing popularity: over 70% of trading pairs are in USDT
Bitcoin is losing popularity: over 70% of trading pairs are in USDT
Bitcoin is losing popularity: over 70% of trading pairs are in USDT
Bitcoin is losing popularity: over 70% of trading pairs are in USDT

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