Stablecoins - if you're like me, without much thought you went from not using them at all, to using them occasionally, to using them a LOT. So while it's no surprise to hear their usage is at an all time high, I was surprised to find out just the last 1 year accounts for nearly a 400% increase.
That increase brought the total amount if stablecoins in the crypto ecosystem from just $29 billion to a whopping $150 billion.
Their growth is still in overdrive right now - 30 days ago that total was $135 billion, meaning $15 billion more stablecoins were minted in just the last month.
Major Shake-Ups Within The Stablecoin Ecosystem...
In order of popularity the main stablecoins are (USDT) Tether, USD Coin (USDC), DAI (DAI), USDP (USDP) and Binance USD (BUSD).
But upon closer inspection you'll notice that the current top stablecoin, USDT (Tether) is actually declining in popularity - beginning the year holding about 75% of the entire stablecoin market, and ending it closer to 50%.
USDC didn't just hold on to it's rank as 2nd most popular - while the total ecosystem grew by about 4X compare to last year, USDC saw growth of nearly 10X - from a $4 billion marketcap to $41 billion!
Stablecoin of the top crypto exchange Binance, BUSD was the 2nd fastest growing and 3rd most popular - they saw growth from $1 billion to $14.
Why Should Traders Pay Attention To The Stablecoin Supply?
Stablecoins are generally used to reduce transactional volatility. As a result, they become helpful tools to use on exchanges.
So the fact that additional funds are being allocated to stablecoins suggests that a large amount of capital is going into the crypto markets. The investor may not have decided which assets to invest in, but they have put their money in a position where they quickly can, when they deem the time is right.
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Author: Justin Derbek
New York News Desk
Breaking Crypto News
New York News Desk
Breaking Crypto News
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