When traders and investors close their positions in crypto assets, they usually convert them into stablecoins before withdrawing them from exchanges as fiat. This exodus has been going on for the past six weeks, leading to an increase in stablecoin market share.
Moreover, this is despite the reduction in the supply of the world’s largest Tether. This is despite the huge hole created by the collapse of the Terra UST stablecoin, which was once the third largest.
According to CoinGecko, the combined market capitalization of all stablecoins is $155 billion. The total cryptocurrency market capitalization is $943 billion, which means that stablecoins make up 16.4% of the total. Half of the six largest cryptocurrencies by market capitalization are now stablecoins.
Tether remains dominant
Industry watcher Byzantine General noted that the dominance of USDT and USDC has never been higher. Large payouts from the Tether ecosystem have led to a reduction in supply, which means “big players are leaving the ecosystem entirely,” they added.
The dominance of USDT and USDC has never been so high.
Mcap USDT has even declined due to large redemptions, which means that the big players are leaving the ecosystem entirely.
I think that says something about bearish sentiment. pic.twitter.com/urYkSigUkk
— Byzantine General (@ByzGeneral) June 22, 2022
Tether remains the leading stablecoin in terms of market share, which is 43%. Its supply is down 19% from its record high of $83 billion in early May. According to the firm’s transparency, there is currently US$67 billion in circulation. report.
Tether has cut about $3 billion in the past seven days as its supply continues to shrink. This leads to a reduction in market share, which does not happen with the Circle USD coin.
USDC has a market share of 36% with 56 billion coins in circulation. In addition, it has not had the same supply cuts as its competitor and is hovering around record high circulation levels. Regulatory and treasury issues continue to overshadow Tether. This is why many have switched to USDC, which is fully supported and regulated.
Both of them dominate the stablecoin ecosystem with a combined market share of just under 80%.
Binance USD is the third largest stablecoin with a supply volume of 17.6 billion coins, giving it a market share of 11.3%. The BUSD supply has been stable for the past four months, with no further minting or burning of the token.
Tether to launch GBPT
On June 22, Tether announced the launch of another stablecoin. The new addition will be called GBPT, pegged to the British pound sterling.
It will be launched in July and will be the firm’s fifth stablecoin after USDT, EURT, the Chinese yuan CNHT and the Mexican peso pegged to MXNT.
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Credit : cryptopotato.com