Stablecoin market caps benefit when Bitcoin and Ethereum’s dominance declines.
The market for cryptocurrencies has lost $285 billion in the last 30 days, and on June 18, the price of one bitcoin in US dollars fell to its lowest level since 2022, at $17,593. According to data from the previous month, the market domination of bitcoin was up 2.9 per cent, while that of Ethereum was up 2.1 per cent. The digital currency industry has suffered huge losses as a result of the crypto bear market, and many people are still sceptical of how long the chaos will last. Following the most recent sell-off, which drove BTC down to $17,593 per unit and ETH down to $877 per coin, the market had a brief period of consolidation.
Since last month, a sizable quantity of fiat value has been withdrawn from both coins, and BTC and ETH’s market dominance has also declined since then. BTC was worth $28,946 per unit at that time on May 27, 2022, while ETH was worth $1,745 per unit. ETH is currently trading for $1,221 per unit, whereas BTC is currently trading for well over $21K per unit. On that day, BTC held a 43.9 per cent dominance over the $1.25 trillion cryptocurrency market, while ETH had a dominance rating of 17.1 per cent. 30 days later, research reveals that BTC currently controls 41% of the cryptocurrency market, while ETH controls 15%.
Tether (USDT), a stablecoin, controls 6.94 per cent of the net value of the digital currency market, and USD Coin (USDC), 5.77 per cent. The market capitalization of Tether has increased since last month when it was roughly 5.72 per cent. The market capitalization of USDC made up 3.77 per cent of the cryptocurrency market in the middle of May. It appears that sellers favoured stablecoins because BTC and ETH had lower dominance ratings. This pattern shows that it is probable, but not assured, that a significant portion of the stablecoin funds is people watching the market in anticipation of the official bottoms for ETH and BTC.
Read more: Will the Bitcoin Selloff Continue Now That It Has Reached $19,000? What’s The Next Lowest Point?