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Stablecoin dominance hits all-time high as crypto winter deepens

When traders and investors exit their crypto asset positions, they typically convert them into stablecoins before delisting them as fiat. This exodus has been going on for six weeks and has resulted in the stablecoin– Market share has grown.

In addition, despite the reduction in supply, this is the largest in the world tether. It’s also despite the massive hole left by the collapse of Terra’s UST stablecoin, which was once the third largest.

According to CoinGecko, the combined is market capitalization of all stablecoins $155 billion. The total crypto market cap is $943 billion, meaning that stablecoins make up 16.4% of the total. Half of the top 6cryptocurrencies by market cap are now stablecoins.

Tether remains dominant

Industry watcher Byzantine General commented that USDT and USDC dominance had never been higher. Large withdrawals from the Tether ecosystem have resulted in a supply cut, meaning “big players are exiting the ecosystem entirely,” they added.

USDT and USDC dominance has never been higher.

USDT mcap even declined due to large redemptions, meaning big players are exiting the ecosystem entirely.

Think that says something about how bearish the sentiment is.

— 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 USDT in early May. According to the company’s transparency report, there is currently 67 billion USDT in circulation.

Tether has tumbled around $3 billion over the past seven days as its supply continues to shrink. This leads to a dwindling market share, which is not the case with Circle’s USD coin.

USDC has a 36% market share with 56 billion coins in circulation. Additionally, it hasn’t had the same supply cuts as its rival, moving up by one all-time high the edition. Regulatory and financial concerns continue to shadow Tether. Because of this, many have switched to USDC, which is fully secured and regulated.

Both dominate the stablecoin ecosystem with a combined market share of just under 80%.

Binance USD is the third largest stablecoin with a supply of 17.6 billion coins, giving it an 11.3% market share. BUSD supply has been stable for the past four months with no further minting or token burning.

Tether to start GBPT

On June 22, Tether announced that it would launch another stablecoin. The newcomer is called GBPT and is linked to the British pound.

It will be launched in July and will become the company’s fifth stablecoin after USDT, EURT, the Chinese yuan CNHT and the Mexican peso-pegged MXNT.

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Source: Crypto News Deutsch

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