In 2019, Tether (USDT) had a world stablecoin dominance of 89%, but it surely has since fallen to simply underneath 50%, in keeping with on-chain knowledge offered by Glassnode — analyzed by CryptoSlate.
All through 2020 and 2021, different stablecoins like USD Coin (USDC) and Binance USD (BUSD) started to rise, with USDC reaching 33% dominance and BUSD reaching 16% dominance. DAI, alternatively, remained fixed.
Restoration on the horizon
In Might, USDT noticed $20 billion in redemptions however has since begun to recuperate. The expansion of stablecoins slowed, with a peak of $24 billion each day inflows. Outflows additionally elevated however peaked at solely $8 billion, indicating that a lot of the capital stays stablecoins.
USDT stays the one stablecoin to have made greater highs in each day transactions and nonetheless see robust demand.
Complete stablecoins on exchanges
There may be roughly $40 billion value of stablecoins on exchanges, with a complete of $4 billion being redeemed this week alone. This means that buyers nonetheless imagine in stablecoins and are possible ready for the following bull run or dip.
By analyzing the STBL digital asset Glassnode knowledge – which aggregates knowledge from all ERC20 stablecoins – we will see the expansion of stablecoins was important up till March, reaching a peak of $24 billion in each day redemptions.
Threat-on to Threat-off
This yr’s risk-off atmosphere has shifted from inflows to outflows for stablecoins, although the outflows have been comparatively small, reaching a most of $8 billion. Regardless of this, nearly all of capital stays in stablecoins.
USDC noticed a ten% rise over the identical interval and has since elevated to 33%. It peaked in June with 38%, resulting in hypothesis a couple of potential flip of USDT.
Alternatively, BUSD didn’t achieve important traction till the second half of the yr, with a dominance of 10%. It has since grown to 16% dominance and has been gaining momentum, significantly because the collapse of FTX.
