The bear market is still raging always through. Most cryptocurrencies are falling and the panic has already left leading crypto firms in need of a bailout. But for some stablecoins it is a good place to stay, according to financial data.
Stablecoins dominate
The dominance of stablecoins in crypto markets has never been greater. That writes the well-known market analyst Byzantine General on Twitter. USDT is still the largest stablecoin, with a market value of approximately US$67 billion. At the end of last week, the token achieved a dominance of almost 10%. Now USDT makes up about 7.5% of the total market. USDC is also making big strides, moving up from 2.5% in April to nearly 7% of the market.
Interestingly, USDT may be in a percentage uptrend, but looks can be deceiving. Since the demise of the Terra ecosystem, the market value has declined sharply. At the beginning of May, this was still USD 82 billion, but now it is only USD 67 billion. So the USDT ecosystem has already shrunk by 18%. Still, USDT’s dominance is increasing, meaning the rest of the crypto market is shrinking faster than USDT.
USDT and USDC dominance has never been this high before.
USDT mcap even declined because of large redemptions which means big players completely exiting the ecosystem.
Think this says something about how bearish sentiment is rn. pic.twitter.com/urYkSigUkk
— Byzantine General (@ByzGeneral) June 22, 2022
At the same time, USDC has risen 10% in market value since mid-May. That will probably have to do with confidence in USDC. Last year, USDC issuer Circle decided to use only cash (dollars) and cash equivalents as collateral for USDC. The risk in USDC is therefore almost zero. Tether’s risk is much higher, as it reportedly uses much more volatile collateral.
We can hardly prove this because Tether itself denies many allegations. However, USDT lost its link with the dollar during the Terra crash. This means that something could indeed be wrong.
huhother tricks for TradingView
On TradingView you can compare the market value of any cryptocurrency to the total market value of all cryptocurrencies. All you have to do is enter the ticker and put a period and a D after it. So Bitcoin (BTC) dominance on TradingView is BTC.D, and Ethereum (ETH) dominance is ETH.D.
You can also easily look up the market value of any major crypto. You then only enter the ticker of the token (such as BTC or USDC), without entering a currency pair.