Tether vs. Dai: Market Share and Risk Analysis of Stablecoins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Market Dominance: Since its launch in 2014, Tether (USDT) has achieved a market cap of $187 billion, establishing itself as the most valuable stablecoin globally, reflecting its significant influence in the stablecoin market.
- Competitive Landscape: Launched in 2017, Dai (DAI) has a market cap of $4.4 billion, and despite its smaller size, its decentralized nature offers greater resilience and appeal in an increasingly regulated environment.
- Risk Assessment: Tether's centralized structure exposes it to higher regulatory risks and transparency issues, while Dai's decentralized mechanism and publicly visible collateral values mitigate its vulnerability to market fluctuations.
- Investment Outlook: Although both stablecoins can provide attractive yields, Dai's transparency and decentralized characteristics are expected to make it a more appealing investment choice in the coming year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
