The Rise of Stablecoins! Are Stablecoins Taking Over The Market? As Crypto Winter Lingers, BTC loses Market Share, But Not to ETH!

September 1, 2022 

  • This past month, stablecoins are increasing in Market Dominance, while the past year shows a growing preference for USDC.
  • Lately, the Dominance Ratio between Tether and Circle has flatlined.
  • BTC is losing dominance partly to ETH and other Alt-coins, but mostly to stablecoins.

“Market Dominance” (or Market Capitalization Dominance) just means how much value of the entire crypto market a single coin holds.

Here’s a look at the Market Dominance of Tether and Circle’s USDC.

The Market Dominance for both coins has increased this past month, but their ratio has flatlined. For the past year, the gap between USDT and USDC shrank by about half. The white line you see overlayed represents this decline. The higher the white line, the bigger the gap, and vice-versa.

But this shows us that they both are sharing an increase in Market Dominance without necessarily taking away from the other. Where is this shared increased coming from, you ask?

Well, in our last week’s post (read here) we observed the continuing decline of BTC’s Market Dominance. However, Ethereum and Alt-coins aren’t gaining enough to explain where the remaining Market Share is going. I believe we have found our answer!

But this is a flippening watch! Let us resume our look at Tether’s decreasing Market share:

Here we see that decline detailed above (in white). We also see the yellow line representing Tether’s volume. The story here is that in general, people are regularly using Tether, but holding onto USDC longer.

Lastly, our recent news update on the top 100 whales (read that here) might suggest a reason why USDT and USDC are equally sharing this growth: whales are experimenting which one might be better for preserving their wealth during a winter.

In short, be wary of your use in USDT, and we’ll keep our eye on things as they develop!


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