Bitcoin has dropped below the $30k mark, while stablecoins go strong as they surpass over $100 billion in total supply.
Total Stablecoin Supply Is Now More Than $100 Billion
According to a report by Arcane Research, the total stablecoin supply has now surpassed the $100 billion mark, while Tether’s dominance is declining.
Here is a chart that shows the trend in the total supply and dominance of some popular coins:
The stablecoins total supply as reached a new height
There are a few interesting features in the graph. The total supply of these coins used to be only $11 billion in July of 2020, and now it seems to have risen $96 billion in the past 1 year, reaching about $107 billion today.
Tether (USDT) dominated the stablecoins market back then, accounting for 83% of the total market. But today it has declined to just 58% of the supply.
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On the other hand, the second-placed coin, USDC, has seen sharp growth, and it now accounts for 25% of the market. Nonetheless, Tether is still the most dominant crypto in this sector.
The company behind USDC, Circle, is currently in the process of going public with the help of a SPAC. In an investor presentation, the company revealed that they project USDC to rise to $83 billion by the end of 2022, and $194 billion by the end of 2023.
Binance USD (BUSD) places third after having overtaken DAI a few months back. BUSD has also seen some great growth over the past year.
While BTC continues its downtrend and dips below the $30k mark, 2 stablecoins have made their way into the top performers for the past week.
These two coins are Fei Protocol (up 0.82% in the last 7 days) and TerraUSD (up 0.08% in the past week). Here is a chart that shows how the the popular cryptocurrencies by market cap have performed in the same period:
All the big coins seem to be down
As you can see in the above chart, Bitcoin and Ethereum seem to be deep in the red.
Below is a chart showing the trend in Bitcoin’s price over the past 6 months:
BTC continues its downtrend | Source: BTCUSD on TradingView
Bitcoin has finally dropped out of the $30k to $35k range that the coin has been stuck in for the past few weeks. It could mean more price action could be coming following a very stale market with minimal volatility.
Featured image from Pexels.com, charts from Arcane Research, TradingView.com