Despite the declining market capitalization Tether became one of the top five cryptocurrency assets by market cap. As because of the prolonged downturn in the crypto market other top cryptocurrencies such as Bitcoin Cash (BCH) and EOS lost their positions.
Since September, Tether lost around $700 million in assets. In September, the market cap of Tether was around $2.5 billion, and now it is around $1.8 billion. This is an incredible loss for Tether. Here the question is why Tether is retaining so much despite the loss. The high cost of exiting could be one factor. Tether has a high cost of exiting than other stablecoins. Other stablecoins such as Gemini Dollar, Paxos Standard, and USD Coin all have much friendlier exit terms than the top stablecoin Tether. Tether charges several thousands of dollars to the investors if they want to convert back to US Dollar.
Around three months ago, the market cap of Litecoin was about $3.4 billion, and now it is behind Tether. The current market cap of Litecoin around $400 million. The same way EOS was also around 200% of its current market cap. Earlier it was about $4 billion, and now it is just over $2 billion. There is still a downward pressure which can further push the market cap. Usually, tokenized platforms rely on the demand from their associated tokens, to maintain its past glory either EOS has to see the launch of new projects or renew the interest in old projects. If we talk about Bitcoin Cash (BCH), it has lost around 75% of its market cap. In September the market cap of BCH was over $8 billion while not it is just $100 million.
Now the question is, will Tether be able to hold its position, as other stablecoins such as USDC and Paxos Standard are rapidly gaining from last one month. The combined market cap of PAX and USDC is around $372 million. Though other stablecoins have a way to go but if the trend continues Tether might lose its position.