Tether maintains stablecoin dominance, market liquidity nears all-time high

Since its launch, USDT has long dominated the stablecoin market. Despite various institutions introducing USD stablecoins to compete with it, they have struggled to capture its market share. Recently, Tether has partnered with Chainalysis to enhance its compliance and on-chain transparency.

• The speed of effective turnover rate continues to grow
• Collaborating with monitoring platforms to increase transparency

In the past few years, disputes over stablecoins collateralized by fiat currencies have been ongoing. Concerns about their transparency and credibility have been raised, especially after Facebook attempted to launch the Libra stablecoin project, which met strong resistance from regulators worldwide. However, these obstacles have not hindered the development of stablecoins.

Stablecoins remain the primary trading medium in the market

According to the latest report from CoinMetrics, stablecoins have continued to grow in the speed of effective turnover rate over the past year, nearing its historical high. Speed represents the turnover frequency of crypto assets, indicating that market participants are increasingly trading with stablecoins.

A report pointed out that Tether's transfer from Omni to the Ethereum blockchain in July last year, with faster transaction speeds, may be one of the main reasons for the faster average turnover rate of stablecoins.

According to data platform Skew, Tether still holds a market share of 79.84% in the stablecoin market.

In addition to USDT, USDC has the highest market share in the market, but TUSD has the highest on-chain trading volume in the past month.

Tether integrates Chainalysis' compliance solution

Blockchain analysis company Chainalysis announced yesterday that its compliance solution for Tether is officially launched globally.

Chainalysis' "Know Your Transaction (KYT)" is an anti-money laundering compliance solution that tracks the complete transaction process from issuance to redemption of tokens in real-time. Tether's CTO Paolo Ardoino stated:

Our collaboration with Chainalysis allows us to understand all the transaction flows of Tether tokens. As one of the largest cryptocurrencies by market capitalization, we are not only responsible to regulatory authorities, but also have a responsibility to provide transparent and automated compliance solutions to the cryptocurrency ecosystem. This solution enables us to establish a secure compliance plan to enhance trust between regulatory authorities and users.

Ardoino also emphasized that real-time tracking is done without sharing user information, and the related data is only stored on their servers.

Previously, ABM extensively reported that Tether has triggered trust crises multiple times in the past. Despite criticism of its reserve mechanism, its market value remains high. The collaboration with Chainalysis not only enhances compliance but also further solidifies its position as the leader in stablecoins.

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