Putting aside Bitcoin (BTC), stablecoins are in the spotlight. Cryptocurrency research outlets Arcane Research and CryptoRank confirm that the supply of stablecoins has reached an all-time high of $180 billion.
Stablecoin growth continues surpassing to the rest of the market, with an increase of 6% in the last 30 days. In times of market volatility, stablecoins can offer price stability, backed by specific assets or algorithms.
During the month of February, three stablecoins entered the top 10 coins by market cap as Binance USD (BUSD) briefly entered. According to Arcane Research, the three largest stablecoins, Tether (USDT), USD Coin (USDC) and BUSD now account for a total of “9% of the total crypto market capitalization.”
Furthermore, while volatility reigns proudly, the stablecoin supply has grown by $9.5 billion in the last 30 days. Arcane Research stated that while it is the largest stablecoin, with a 44% market share, USDT has stalled over the course of the past year, and USDC is accelerating it with “20% growth in 2022.” “.
“If USDC and USDT continue to grow at rates similar to 2022, USDC will become the largest stablecoin by market cap by the end of June.”
There was more good news for Tether, the largest stablecoin by market cap this morning. An industry issue, Tether’s FUD was a destructive narrative for the crypto industry in 2021, but USDT’s trajectory now appears to be on the upside.
In its last certification of reserves, the company had reduced its exposure to commercial paper by 21%. Furthermore, the report stated that Tether’s “consolidated assets exceed its consolidated liabilities.”
While most crypto advocates may wonder what the importance of stablecoins is, their use cases are growing particularly in the developing world. What’s more, For investors, stablecoin dominance is an interesting metric, as noted here:
Noticed something interesting.
Historically when tether dominance reaches 4.5% to 5% it marks a bottom on $BTC.
Seems like sentiment reaches peak fear around that level. pic.twitter.com/4RnHOTMEts
— Byzantine General (@ByzGeneral) February 21, 2022
I noticed something interesting.
Historically, when tether dominance hits 4.5% to 5%, it marks a bottom in $BTC.
It seems that the sentiment reaches the peak of fear around that level.
With the total stablecoin supply reaching new all-time highs, traders are hoping that the $39,600 level will not present much resistance.
Keep reading:
- Bitcoin Traders Mark Levels to Watch as Cryptocurrency Price Bounces to $39,000
- Too late to blame Tether as Bitcoin price hits $63,000, according to trader filbfilb
- Tether reduces its reserve allocation to commercial paper by 21%, from about $30.5 billion to $24.16 billion
- According to a survey commissioned by Avanade from Wakefield Research, Spanish companies are riding the Blockchain wave
- Bitfinex “chains” $5 million USDT on the EOS blockchain protocol
- Israeli Citizen Accused of Stealing Over $1.7 Million in Crypto
- Bitcoin rally stalls at $39,200, but BTC price metrics suggest local floor could be here
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