Developments

Binance stablecoin: An end to Tether’s (USDT) market control

Binance’s chief financial officer, Wei Zhou, has indicated that the exchange is planning to issue a Binance stablecoin in the coming months.

Zhou, while speaking to Bloomberg, said that the launch of the Binance stablecoin is in a matter of weeks to a month or two. In the past, Tether has demonstrated signs of a slight decline. However, due to high demand from users in Asia, USDT has been able to secure its dominance over the global stablecoin market.

As reported by a research firm, Diar, in 2019, Tether’s on chain transaction volume indicates that the volume of the stablecoin on blockchain networks such as TRON and EOS achieve a new all-time high.

 According to the research firm:

“On-chain data shows Tether movements hitting a new all-time-high for 2Q19 with one month left on the calendar for the period. What is most striking, however, is the volume coming in and out of Chinese exchanges dwarfs western and global trading venues and accounts for more than half of the total transaction value of known parties,”

In 2019, the majority of Tether’s transaction in the second quarter was driven by China, which currently has a significant user base of the stablecoin. With the current network effect of Binance over global crypto exchange market and its international user base, a Binance stablecoin is likely to sweep users off their feet.

Liquidity is crucial for stablecoins. Apart from compelling features of other stablecoins such as USDC and the Gemini dollar, which are both issued by regulated exchanges – circle and Gemini in compliance with US regulations – Tether’s volume on Binance makes rival stablecoin almost unrecognizable.

Zhou added:

“From the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well,”

Do you think the Binance stablecoin will have a negative impact on the dominance of USDT?

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550% Gains Means Binance Coin (BNB) Is The Most Profitable Coin Of 2019

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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