Tether Dominates all Other Stablecoins, Despite A Decline in Market Cap; What’s Next?

The post Tether Dominates all Other Stablecoins, Despite A Decline in Market Cap; What’s Next? appeared first on Coinpedia Fintech News

Stablecoins, the cryptos that are pegged to other assets or currencies, do not change their value depending on market volatility. Hence, it can be considered a safe haven and can also be used to trade with other cryptos. Presently, the crypto markets are displaying immense volatility as the prices of popular cryptos like Bitcoin, Ethereum, etc. have been diving heavily towards the north and south. 

Besides, the market cap of all the stablecoins has been plunging heavily for the past 15 months. Just before the collapse of the Terra ecosystem in May 2022, the market cap of stablecoins had reached highs of $164.29 billion, of which USDT had a nearly 50% share of $80 billion. Ever since the market collapsed, the stablecoin market cap also began to decline, which has continued to this day. 

Interestingly, USDT does not appear to have lost any value, as its market cap is surging. 

Since the beginning of the year, the Bitcoin price has been facing extreme price variations, which has kept the entire crypto market on its toes. The altcoins usually tend to follow the star crypto, and hence the majority of them remain within a consolidated trend. In the meantime, whales and sharks continue to accumulate stablecoins, which are currently at a higher ratio of supply than they have had for a while. 

The addresses holding 100K to 10M USDT, USDC, BUSD, DAI, TUSD, and USDP have been on a constant rise for the past two months. This may indicate the whales and the sharks may be preparing for the next bull run and securing their funds within the stablecoins. Of all the other stablecoins, DAI is the most accumulated, followed by USDT, USDC, BUSD, etc. 

Besides, as per data from Santiment, the whale transaction count for USDT and USDC has risen nicely since the beginning of the month, followed by BUSD. Moreover, the mean dollar invested age, which is the average age of all coins on the chain-weighted by the purchase price, is also surging pretty high. This indicates that the tokens are growing old in the whales and sharks’ wallets without any fear of liquidation. 

The statistics of the stablecoins point out the incoming bullish trend within the crypto space. Once the negative volatility ceases, the bulls are expected to take over the rally and raise them high.