Stablecoin Market Dominance Hits 18-Month Low
Stablecoin market dominance has reached its lowest point in 18 months, according to a Monday report.
Amid a volatile year for cryptocurrencies, the stablecoin sector has experienced a sustained decline. As reported by CCData, the decrease has persisted for 18 months, causing market dominance to fall to 11.6% as of September. The downward trend has had investors and market watchers questioning the factors contributing to the decline.
The stablecoin sector’s market capitalization has dropped to $124 billion, with major players like USDP, USDC, and BUSD experiencing declines, while USDT, the largest stablecoin by market cap, has managed to maintain growth.
The US Securities and Exchange Commission’s lawsuits against crypto exchanges Binance and Coinbase have impacted the crypto market, while the race to list Bitcoin ETFs has influenced stablecoin trading volumes. Investors are cashing out of stablecoins to invest in traditional assets, driven by rising yields in fixed-income securities, such as 10-year U.S. Treasury bills, due to the Federal Reserve’s inflation control measures.
(With inputs from Shikha Singh)
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