Anxious USDT, chasing rookies, where is the stable currency?
Editor's Note: This article comes fromVernacular Blockchain (ID: hellobtc), Author: A Poplar, reproduced by Odaily with authorization.
existstable currencyEditor's Note: This article comes from
Vernacular Blockchain (ID: hellobtc)
, Author: A Poplar, reproduced by Odaily with authorization.
exist
USDTIn the market where the giants are vying to seize the beach, it is currently divided into two major directions: legal asset custody and digital asset mortgage. Among them, the former, due to first-mover advantages and historical factors, no matter in terms of market share or user habits, are absolutely dominant. However, the "carrying the handle" of the fiat asset custody stable currency - 1:1 USDT anchored to the US dollar, its owner Tether, seems to have a new trend recently:French currencyOn November 13, according to Theblockcrypto, Paolo Ardoino, the chief technology officer of Bitfinex and Tether, said that the company is planning to launch a gold-backed stablecoin Tether Gold, but did not disclose more details about this new cryptocurrency.
The direction of regulation is uncertain. Does Tether’s move mean that the direction of the stablecoin market is quietly changing? Where will the future of stablecoins go?
secondary titleTetherThe dominance of Tether can hardly hide anxiety
Since its birth, doubts about "vicious additional issuance, market manipulation" and "insufficient margin" have been everywhere, but it has never had a substantial impact on its near-monopoly market position. Especially after "9.4", as almost the onlyETHFrench currency
The deposit and withdrawal channel, USDT is further deeply bound to the entire digital currency market, which is quite "too big to fail".
Until the "trust crisis" in October 2018 was deeply fermented, USDT's market share dropped from 90% to 70%. Fortunately, the market inertia is too heavy, and USDT immediately launched a market defense battle, so even if the subsequent USDC, PAX, TUSD, etc. are very sharp, they still have not posed a direct challenge to USDT's market dominance.
But while the foundation remains,
And USDT has foreseen the potential risks in the future, and has launched a massive "self-revolution" this year:
1. Abandon the cumbersome OMNI protocol, radically turn and migrate to a lighter and more flexible
, TRON and other public chains.
In fact, Thther's actions have never stopped in the past year. Whether it is the migration to ETH or the test and issuance of USDT on the EOS chain, there are already plans. Especially in the past six months on TRON, Tether has continued to intensively issue a number of ultra-large TRC20 -USDT, with a total value of more than 500 million US dollars.
As of November 17, the total USDT issued on the ETH and TRON chains reached 2.87 billion US dollars, surpassing the 1.74 billion US dollars on the BTC chain. Tether has initially completed the transformation of USDT.
2. Promote stable coins anchored to diversified legal currencies (yen, euro, etc.), and consider issuing stable coins anchored to commodities (gold, crude oil, rubber).
Among the former plans, the most controversial is the RMB stablecoin CNHT launched in September this year. This "bold move" has caused controversy in the market once it was launched. Although it is extremely difficult to actually implement it, it is enough to see its Striving for a diversified strategic posture;
The latter includes Tether Gold, a gold-backed stablecoin that was just rumored on November 13, but whether it can win the market as quickly as USDT is still unknown. "Even Tether, the USDT issuer, can hardly change users' trading habits. According to the law, the newly issued stable currency will not gain more recognition because of USDT’s public influence, but will only be resisted by users because of the credibility crisis of the issuer.”
Through Tether's various compensation measures and innovative attempts over the past year, it can also be seen that Thther is slowly becoming anxious. It started with USDT and is trying its best to get rid of its absolute dependence on USDT. "Don't put eggs in the same basket", Tether is trying to move closer to a diversified and comprehensive stablecoin service provider. As for whether it can get what it wants, only time will give us the answer.
secondary title
On October 15, 2018, during the crisis of trust that "short positions were also cut off", the plummeting USDT triggered a large-scale market panic for the first time, and people began to pay attention to the huge moral hazard of Bitfinex and Tether behind it.
The giants who have been struggling to challenge USDT were moved by the news. Relevant parties represented by leading trading platforms have seized the opportunity to launch targeted strategies that are inextricably linked to themselves through the targeted strategy of "transparency and compliance". The "1:1 USD-anchored stablecoin" - Binance's BUSD, Huobi's HUSD, OKEx's USDK, etc., is trying to replicate the USDT issuance business of Bitfinex and Tether, and take a share of the stablecoin market.
However, although the "rookies" of stablecoins that have sprung up like mushrooms once had a strong momentum, after this year's fighting, they have not shaken USDT's market dominance.MakerDAccording to DappTotal data, as of November 17, USDT accounted for 82.28% of the entire stablecoin market share with a circulation of US$4.62 billion, ten times the volume of the second-ranked stablecoin USDC (US$443 million, 7.91%). It is even more disrespectful to the rest of the stablecoin rookies whose share is far below 5%, which is almost negligible.
Rookie challengers under the banner of "more transparency" and "more compliance" face strong market inertia and first-mover advantages, and the road to replacement is still long. They may share USDT's market share and dominance. In addition to being relatively better, it is also the same as the "short position crisis", waiting for the boss to relax and slack off, and make mistakes.DAIsecondary titlesmart contractCollateral Stablecoins Not to be Underestimated
In addition to custodial stablecoins anchored to fiat currency, to
Digital asset-collateralized stablecoins represented by AO, BTS (BitUSD), etc., although they cannot be compared with the former in terms of market share, and the relative stability mechanism is not perfect, they naturally have the core pursuit of the former: openness and transparency, eliminating Manipulation.
For example, in MakerDAO, pass
smart contract
This enables DAI to achieve long-term anchoring to the U.S. dollar under a decentralized architecture, although compared with custody classes such as USDT that is directly against the U.S. dollar, the stability fluctuates greatly: in the past year, the deviation between the lowest price and the highest price of the day is within The number of days around 1% is only 164 days, which is only half of USDT (344 days) in the same period.LibraHowever, compared with anchored stable digital assets such as USDT and TUSD, its biggest advantage is to automatically maintain the operation of the pledge mechanism through smart contracts, eliminating the risks of private morality and opacity, over-issuance, and lack of auditing, and replacing human nature with codes , changing moral constraints into mathematical rules is undoubtedly more reliable.
On the evening of November 18th, MakerDAO will also officially launch multi-collateralized DAI, an upgrade that made the head of MarkDAO China frankly say "a little excited, but also a little nervous". One of the most watched changes includes the DAI deposit rate (DSR) and multi-asset mortgage upgrades.
And this is the epitome of the development of digital asset-backed stablecoins represented by DAI—the governance structure is continuously optimized, proposals are improved, and system upgrades are steadily advancing. In addition, it meets the corresponding market demand for more transparency. The prospects for future development cannot be underestimated.
secondary title
Where is the future of stablecoins?
In the reckless era in the early stage, regulation did not interfere much with the market. However, since the beginning of this year, the influence of global regulation has gradually increased, and the International Monetary Fund and the G7 have also spoken out against global stablecoins. Especially at
