Gemini Dollar supply seems to be dropping immensely over the last 7 months while some of the other pegged-value assets continue to skyrocket as we previously saw in the latest cryptocurrency news.
The market cap of the Gemini dollar has been going down since December 20, 2018, and it managed to slip from the all-time high of $103.106 to a stunning $7.981 million at the time of writing. This marks a massive 92% drop in just seven months and in the same period, bitcoin increased from $3,126 to $10,336 which is an increase of more than 230 percent. Other stablecoins are doing much better than the Gemini Dollar. For example, Paxos Standard Token has a market cap of about $168 million while Circle’s USDC is reaching a high supply of more than 405.34 million. The controversial Tether has a total quantity of more than $4.25 billion as at the time of writing.
In comparison to its other peers in the United States, the Gemini exchange noticed a lot less trade traffic on the platform according to the data gathered by CoinGecko which shows that the company of the Winklevoss twins is on the 21st rank in the last 24 hours with just $60,274 million in daily volume. Coinbase Pro, which is also based in the United States, has about $602 million worth of trades on its exchange. Kraken is also processing about $340 million worth of trades on its platform.
The reason for this could be the lack of adequate competitive platforms which lead to the demand for the Gemini dollar to be dropping. Since it is pegged to the US dollar, the token allows the traders to switch between crypto-assets without having to convert their cryptocurrencies but as it seems, not so many traders demand the Gemini Dollar which could be a consequence because of the strictly regulated financial market.
There also many other competitive players as well. Tether’s USDT is now more visible on other exchanges that are not based in the US. Binance as well has a very contentious status while the USDC has a much bigger clientele. Paxos is also among the favorites since it is able to create and redeem stablecoins instantly. The traders are not very keen on the Gemini Dollar as well since the community believes that the program which was launched by Gemini is not really good for them as noted in the altcoin news previously.
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