According to Glassnode research, BUSD, USDC, and USDT own over 90% share of the stablecoin market. In its weekly report, the latest one released yesterday, these three stable coins have grown massively in the last half a year and all of them now constitute over $61 billion market capitalization which is equivalent to about 93% of the entire stablecoin market.
The Performance of these Stablecoins For This Year And Last Year
By comparison, half a year ago, these three stablecoins had a total market capitalization of about $19.3 billion – approximately 30% of what they currently represent. Also, the entire stablecoin market was worth a little over $6.9 billion.
This analysis discovered that there is a relationship between the growth of stablecoins and the king coin (bitcoin) based on market cap. This study also proved that there has been a steady rise in the supply of USDT in the last few weeks even though bitcoin has neither been on a stable uptrend or downtrend and there is a gradual decrease in the growth of BUSD and USDC.
Comparison between Bitcoin market cap and stablecoin supply. Source: Glassnode
All About the Stablecoin Are Not Good News
However, the chart analysis through the stablecoin supply ratio metric observed some significant lows.
This metric evaluates the buying power of the stablecoin sector all over the world by comparing BTC’s market cap with the entire stablecoin supply.
When bitcoin is experiencing a price decline and there is an inflow of stablecoins into the virtual asset market, it can push up the bitcoin prices.
On the contrary, when BTC prices are increasing, the stablecoins purchasing power becomes lesser. Hence, they have less effect on BTC prices.
Glassnode’s report concluded by saying, “the rising influx of stablecoins over the past 7-8 months has resulted in a significant low in the SSR metric. Thus, it is highly likely that the purchasing ability of digital dollars will become high. There is now a similar demand for digital dollars, bitcoin, and other digital currencies.”
How These Top Three Stablecoins Are Performing When Compared Against Each Other
Meanwhile, a tether transparency report shows that the $USDT has experienced a twofold increase in market capitalization compared to its value at the beginning of the year. It is now about $46 bn compared to the $20 bn at the start of this year.
Also, USDC is currently at an ATH of about $12 bn according to the information published on the circle website last Friday and Coingecko predicts that Binance USD might reach about $5.2 bn market cap before the end of today. Last week, Jeremy Allaire made a forecast that the settlement value of the USDC may likely exceed that of PayPal very soon. Keep in mind that investing in stablecoins allows you to keep your funds in crypto assets without worrying about the volatility associated with leading digital assets like eth and BTC. The side benefit of these coins is that you can use them to trade cryptocurrencies inexpensively.