220 Interactions, 2 today
According to Glassnode, an on-chain analytics provider, the top three stablecoins account for more than 90% of the sector’s total market value.
According to Glassnode’s April 13 “Week On-chain” survey, the top three stablecoins — Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) — have seen substantial growth over the past six months, with a total capitalisation of more than $60 billion, accounting for 92.75 percent of the stablecoin sector.
Six months earlier, the total stablecoin capitalisation for all three was less than one-third of what it is now, at $19.2 billion. Stablecoins were worth just $7 billion together at this point last year.
The study compared the rise of stablecoins to the market cap of Bitcoin, revealing a strong link between the two. The study also discovered that, amid BTC’s sideways pattern, USDT production has continued to rise in recent weeks, although growth in USDC and BUSD has slowed.
The study mentions record lows for its Stablecoin Supply Ratio (SSR) statistic, which compares Bitcoin’s market cap to overall stablecoin supply to quantify the stablecoin sector’s global “buying power.”
When BTC prices are down, stablecoins will purchase a greater portion of it, causing prices to rise. In contrast, as prices rise, the available stablecoins may be used to buy fewer products, reducing their impact on prices. Glassnode came to the following conclusion:
“The growth of stablecoin supplies throughout 2020-21 has held the SSR metric near historical lows suggesting a relatively high buying power of digitally native dollars. The demand for digital dollars appears to be keeping pace with demand for Bitcoin and cryptocurrencies as a whole.”
According to the Tether disclosure survey, Tether’s market cap has more than doubled since the beginning of 2021, reaching a new high of $45.6 billion. Circle’s website posted an all-time high of $11.5 billion USDC on April 9, while Goingecko estimated BUSD availability at $5.1 billion on April 13.
Circle CEO Jeremy Allaire expected on April 7 that the USDC stablecoin would soon outperform PayPal in terms of settlement volume.