The reason behind the dominance of USDT!
The term Stablecoins is a very popular name in the crypto market. Because it is an online-based digital asset that is pegged to reserve assets such as the US dollar, Euro or even commodities like gold. Generally stablecoins are designed to maintain a stable value. In order for these coins to remain stable, they achieve this stability through various processes. Mechanisms these coins employ to maintain stability include fiat-collateralized, crypto-collateralized, and algorithmic stablecoins. A fiat-collateralized stablecoin, the most common type. Stablecoins are a type of stablecoin that solves this problem by offering a stable and reliable alternative as well as facilitating their use in a wide range of applications including base trading pairs, remittances and decentralized finance (DeFi).
However we often hear the term dominance in the crypto market. The market is buzzing with Bitcoin dominance as well as USDT dominance. Due to this dominance, many things can be seen to change. The dominance of USDT is attributed to several factors. Let's discuss all these factors.
USDT is one of the most popular stablecoins. It is also one of the highest and number one coins in terms of market cap among all other stablecoins. This stable coin boasts the highest trading volume. It is even available as a base trading pair on all the centralized and decentralized exchanges we know of. And for all these reasons, USDT stablecoins dominate.
Due to USDT stablecoin's market cap as well as its huge popularity, many financial transactions are done through it as many DeFi protocols and platforms use USDT for transactions, lending and borrowing. And it enables participation without exposure to price volatility to conduct these activities.
USDT has become one of the most popular trading mediums for investors due to its stability. Using this coin facilitates fast and cost-effective cross-border transactions. We usually spend a lot of time and money on cross-border transactions in the traditional banking system. There it acts as an alternative to the traditional banking system through this digital stable coin.
USDT also offers several advantages in regions facing hyperinflation or economic instability, among other advantages. USDT offers a reliable store of value even in regions experiencing economic instability.
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.
tweet link
Upvoted! Thank you for supporting witness @jswit.
In a rather clear and detailed manner you have shown why USDT is exerting dominance especially due to its accessibility and the fact it facilitate cross border payment so it's no surprise at all.