Stablecoin ‘Ascent’, Bitcoin Plunge

The stablecoins are ‘on the rise’, right in the middle of the crypto market flooding with ‘reds’ as Bitcoin and most altcoins slide.

BTC and ETH gradually lose their position in the crypto market

This past June was a bad time for Bitcoin and the entire crypto market. After the collapse of the LUNA/UST duo (now renamed LUNC and USTC, respectively), the market constantly faced a series of other events and created a wave of extreme sell-offs in the investment world.

According to Bitcoin News, there have been about $285 billion out of the cryptocurrency market in the last 30 days. Bitcoin (BTC) – the world’s largest crypto-currency – has “bottomed out” $20,000 and the second largest – Ethereum (ETH) – has recorded a price of less than $1,000. Thus, BTC price has reached the lowest level since January 2021. Along with that, most other altcoins in the market are plagued by the same situation.

Also during this time, the market’s greed and fear index (FGI) was at the “extreme fear” level, with the lowest score recorded during this time at 6 points.

Going back to BTC and ETH, after the sharp decline, the market position of both tokens has decreased significantly.

As noted on June 29, BTC is worth over $21,000 and ETH is priced in the range of $1,180. Only last month, BTC dominated the $1.25 trillion crypto market with market capitalization accounting for 43.9%, followed by ETH – for 17.1%. Currently, these two figures are 41% and 15%, respectively. Although the two tokens are still holding the top two positions in the market, it is undeniable that the percentage is decreasing over time.

The stablecoin “rise”

Stablecoin is defined as crypto-currencies that attach value to a given currency, usually the USD.

Although there has been much doubt over this particular crypto-currency following the rapid collapse of the UST, especially TetherUSD (USDT) – a partially uncertified stablecoin, stablecoin has taken a larger share of the market.

In particular, USDT accounts for 6.94%, USDC (issued by Coinbase) accounts for 5.77% and BUSD (issued by Binance) accounts for about 1.8%. These figures in the previous 30 days were 5.72%, 3.77% and 1.43%, respectively. If these top three stablecoins are pooled, their total market capitalization is about 14.5% – roughly the same as ETH’s percentage (14.7%).

Considering the global trading volume for 24 hours (morning of June 28 to 29), BTC reached a volume of $18.7 billion, ETH reached $13.5 billion. Thus, the total transaction volume of the two tokens with the highest value reached 32.2 billion USD.

During the same period, USDT alone had a trading volume of about $48.58 billion. More significantly, more than 60% of BTC related transactions are USDT paired transactions.

What does this trend say?

Bitcoin News said that the trend of users focusing on stablecoin is a sign that many investors are waiting for the moment – the moment when the market really hits the bottom. However, this page also notes that the above statement is still conjectural. In addition, as mentioned above, no one has yet been able to be sure whether the market’s “killer” phases in recent months have been the real crypto winter, or whether it’s all just the beginning and the worst tragedy will continue to hit.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

KAI

CoinCu News