According to The Block, the value of assets for all stablecoins surpassed $10 billion Tuesday, having surged by over 70% in just two months.
Source: The Block
Stablecoin supply growth comes as more cryptocurrency traders choose to trade alternative cryptocurrencies (or altcoins) using dollar-backed digital tokens instead of bitcoin.
Almost every exchange offers the choice to trade assets priced in different quote currencies, usually dollars or bitcoins, which determine the value of alternative cryptocurrencies.
Altcoin traders have historically preferred to use bitcoin or even ether as the currency that prices other tokens. But during the past two years, that trend has shifted significantly. Now they mostly trade against stablecoins.
A growth in trading stablecoin quote pairs coincides with considerable overall growth in total altcoin trading volume, according to data from Nomics. But that growth excludes ether and bitcoin quote pairs, which have mostly stayed below their volume highs made in late 2017.
Tether still dominates the stablecoin sector with 85.1% of the market share and over $8.8 billion in total supply. USDC ranks second with 7.2% of the market share.
The total supply has seen a steep upswing in 2020 thus far, surging by 79% since the beginning of February, according to The Block’s research findings. Alongside the overall growth, Tether’s market dominance also grew from 82% in early February to 85%.
Read more:
- USDT Market Cap Rose As Bitcoin Market Cap Dwindled While Only 115 USDT Addresses Control 56% Of The Total Supply
- Tether’s Dominance Is About More Than Network Effects