Monday, February 26, 2024

Stablecoin Dominance Reaches ATH As Crypto Winter Enhances

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The Stablecoin dominance reaches ATH as the crypto winter enhances which is another sign of increasing bearish sentiment so let’s read more today in our latest cryptocurrency news.

When the investors and the trader’s exit crypto positions, they often convert them into stablecoins before taking them off the exchanges as fiat. The exodus that has been happening for the past few months, caused the stablecoin market share to grow. This is despite the reduction in the supply of Tether and it is also despite the hole left by the collapse of Terra’s UST stablecoin which was once the third biggest.

According to CoinGecko, the market cap of all stablecoins is $155 billion with the total crypto marekt cap being $943 billion which means stable coins represent 16.4% of the total, and half of the top six cryptos by market cap are stablecoins. The Industry observer Byzantine General commented that the USDC and USDT dominance has never been this high and the larger redemptions from the Tether ecosystem resulted in a cut of supply which men big players are exiting the ecosystem.

The stablecoin dominance reached an all-time high as Tether remains the leading stablecoin in terms of market share which is 43%. the supply decreased by 19% since the record of 83 billion back in May. There’s 67 billion USDT in circulation now according to the company’s transparency report. Tether trimmed around $3 billion over the past week while its supply continues to decrease and this can also lead to a dwindling market share as the same is not happening with the Circle USDC coin.

USDC has a market share of 36% with 56 billion coins in circulation. It also hasn’t had the same supply cuts as its rivals and it Is moving near the ATH circulation levels. The regulatory and treasury concerns continue to overshadow Tether which is why most switched to USDC which is fully backed. Both of these dominate the stable coin ecosystem with a combined market share of under 80%. Binance USD is the third biggest stablecoin that has a total supply of 17.6 billion coins giving it a market share of 11.3% and BUSD has been stable with no further mining or burning of the token.

USDC Stablecoin Erodes, tether, usdt, stablecoin

Tether announced that it will launch another stablecoin with the new addition being called GBPT and will be pegged to the British Pound. It will launch in July and will become the company’s fifth stablecoin.

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