Stablecoin Dominance Tumbles Despite Tether (USDT) Notching Record High Market Cap: Report
The stablecoin market witnessed a declining market capitalization for the 16th consecutive month. According to the latest crypto analytics platform, CCData, the figure fell by 0.82% to $127 billion in July, hitting the lowest level since August 2021.
The market cap dominance of stablecoins also plummeted to 10.3% from 10.5% in July. On the brighter side, however, the stablecoin trading volume surged by more than 16% to $483 billion in June. This was the first increase in monthly volumes since March.
- The report noted the rising trading volume trend could be due to the volatility in the market triggered by the lawsuits against crypto giant Coinbase and Binance brought by the United States Securities and Exchange Commission (SEC).
- The uptick in trading activity following the spot Bitcoin ETF applications filed by multiple TradFi companies, such as BlackRock and WisdomTree, could be yet another factor.
“As of the 17th of July, only $219bn has been traded – with volumes on track to record a lower monthly volume with major assets including Bitcoin and Ethereum struggling to break key resistance levels at $32,000 and $2,000 respectively.”
- July witnessed USDT’s dominance, which notched a fresh all-time high market cap of $83.8 billion, accounting for more than 65% of all the stablecoins by market cap.
- During the same period, USDC and BUSD’s market cap plunged significantly, falling by 3.01% and 4.57% to $26.9 billion and $3.96 billion, respectively.
- The trend marked the seventh consecutive month of decline in Circle-backed stablecoin which had previously seen a dent in investor confidence as a result of the banking turmoil. This is also the lowest market cap for USDC since June 2021.
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