Despite a gloomy outlook for the crypto sector as a whole, the stablecoin supply has reached $180 billion, up $9.5 billion in the last 30 days.
Stablecoins are taking over the spotlight from Bitcoin (BTC). Arcane Research and CryptoRank, two crypto research firms, report that stablecoin supply has surpassed the $180 billion mark.
Stablecoins have grown at a faster rate than the rest of the market, up 6% in the last 30 days. Stablecoins, which are backed by certain assets or algorithms, might provide price stability in times of market instability.
Three stablecoins, including Binance USD (BUSD), briefly joined the top ten coins by market cap in February. Tether (USDT), USD Coin (USDC), and Binance USD (BUSD), the three largest stablecoins, currently account for “9% of the whole crypto market cap,” according to Arcane Research.
Furthermore, despite the fact that volatility reigns supreme, the stablecoin supply has increased by $9.5 billion in the last 30 days. While USDT, the largest stablecoin with 44 percent market share, has been stable over the last year, Arcane Research claims that USDC is on the rise, with “20 percent increase in 2022.”
“By the end of June 2022, if USDC and USDT continue to expand at comparable rates as they have in the past, USDC will be the largest stablecoin by market cap.”
Tether, the largest stablecoin by market capitalization, received more positive news this morning. Tether FUD, a crypto industry bugbear, was a harmful storey in 2021, but the USDT trajectory now appears to be on the up.
The corporation had cut its exposure to commercial paper by 21% in its most recent reserves attestation. Tether’s “consolidated assets surpass its consolidated liabilities,” according to the report.
While most cryptocurrency supporters may question the utility of stablecoins, their use cases are expanding, particularly in underdeveloped countries. Furthermore, as highlighted here, stablecoin dominance is an interesting measure for investors:
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
With the total supply of stablecoins reaching new all-time highs, traders are hoping that $39,600 does not act as a significant barrier.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
