Kaiko Analytics: Tether’s USDT Stablecoin Dominance Challenged by New CompetitorsKaiko Analytics, a market intelligence platform, highlights that Tether's (USDT) dominance in the stablecoin market is facing challenges from new competitors.In their recent report titled "Tether Loses Market Share," Kaiko Analytics reveals that Tether's market share over centralized exchange platforms (CEXs) has decreased by 13% year-to-date (YTD) due to the increasing popularity of alternative dollar-pegged digital assets like FDUSD and USDC."Despite holding a dominant position in the market, USDT's share on CEXs has been on a downward trend, dropping from 82% to 69% YTD. This decline can be attributed in part to the rising competition from stablecoins such as FDUSD, which benefit from Binance's zero-fee promotions.USDC has also seen a growth in its market share, indicating a preference for regulated alternatives. Currently, stablecoins issued in the US account for 10% of the total stablecoin trade volume.Among the top five stablecoins by market capitalization, only Circle's USDC is regulated under state US money transmitter frameworks. However, its share has increased from less than 1% in 2020 to 11% today."Kaiko suggests that other competitors like Ethena (USDe), which offers unique yield features, may also be impacting Tether's dominance in the market."Another factor contributing to Tether's declining market share could be the emergence of innovative yield-bearing alternatives such as Ethena's USDe. Since its launch in February, USDe's trading volume has grown significantly, although it has declined from April's peak of over $800 million following Ethena's ENA airdrop."Despite these challenges, Tether reported record-breaking profits of $4.52 billion in the first quarter of 2024, according to their Attestation Report.