Key facts:
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The market capitalization of USDT and USDC dominates at 13%.
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If other stablecoins were added to the statistic, the dominance would rise to over 17%.
The current Bitcoin (BTC) bear market is causing some investors to flee from these and other volatile cryptocurrencies and shift their funds towards stablecoins. These are tokens that keep the price parity with another asset, usually the US dollar.
The two largest stablecoins by market capitalization are the Cord (USDT) and the US Dollar (USDC). days ago They reached the highest level of their dominancethat is, the percentage of funds invested in cryptocurrencies allocated to these two assets.
Together, USDT and USDC reach 13% of dominance. To get an idea of what this volume represents, it is useful to know that BTC currently dominates at 43%. For its part, Ether (ETH), the cryptocurrency of the Ethereum network, accounts for 14% of the market.
Although these numbers are high, it is worth clarifying that the dominance of these two stable businesses It reached its highest point last Saturday, June 18, at 17%.. That date coincided with the bitcoin price dropping below $18,000.
The trend in the charts of the dominance of both stablecoins is showing a bullish pattern opposing the current market decline.
USDC wants to dispute the USDT ruling
One specific detail that reflects this trend is that during this time USDT, which currently dominates at more than 7%, has significantly reduced its market value. It has risen from a historical maximum of over $82,000 million to about $66,000 today. USDT is issued or burned directly by the organization behind Tetheramong other things, in order to preserve the token’s parity.
For its part, USDC has increased its capital, i.e. More stable coins issued in the last month, totaling $5 billionwith a current capital of more than 55,000 million US dollars.
about domination, It is a concept that refers to the percentage occupied by the market capitalization of a cryptocurrency. Regarding the total capitalization of all cryptocurrencies and tokens.
Stable currencies provide stability before volatility
The increasing dominance of the stablecoin can be directly linked to the crash of the cryptocurrency market. It is normal to think that people are fleeing cryptocurrencies like BTC or ETH and keeping their wallets in stablecoins.
However, another scenario that favorably affects this dominance is the growing interest in acquiring foreign currency among the population of developing countries. In many cases, government policies limited access to international financial instruments, and national currencies began to constantly depreciate.
An example is Venezuela, a country whose political and economic situation has forced its residents to seek options for access to foreign currencies, specifically the US dollar. This has been the current influence that stablecoins have on the Venezuelan economy, as prices within the parallel market (black market) Dollars are made based on the price that USDT holds within the P2P exchange Binance.
An analysis of the most searched place for “USDT” in Google shows how most of them in the top ten belong to the category of developing countries. Cuba is the country that ranks first on the podium.
Although many people migrated their capital to stablecoins during the passing of the “crypto winter,” others see this type of cryptocurrency It is an option that allows them to have ways to save against weak economies.
