Five Stablecoins Eclipse Bitcoin
Bitcoin, the world’s largest cryptocurrency, holds half of the market capitalization. However, stablecoins are the dominant assets in the crypto space. Before USD was used for buying and selling cryptocurrencies, stablecoins were used as a medium. Despite a decrease in utility over time, the demand for these assets has not declined as much, as highlighted by CoinMetrics founder Nic Carter during the recent Token 2049 event.
Carter reveals that stablecoins only account for about 10% of the crypto market capitalization, with Bitcoin contributing nearly 50% of the total market cap of $1 trillion. However, the utilization of these assets is starkly different. The five biggest stablecoins, USDT, USDC, DAI, TUSD, and BUSD, account for most of the circulating value and have significantly surpassed Bitcoin in on-chain usage. These stablecoins dominate close to 70% of on-chain transaction volume, while the remaining 30% is split into BTC, ETH, and other layer-1 tokens. Despite a decline in crypto volume and activity, these stablecoins maintain a robust demand, with their annual volume nearly matching Visa’s volume, despite being launched less than six years ago.
(With inputs from Shikha Singh)
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