A look at Stable Coins Market Dominance Trends...
There have been huge changes in the relative market cap value of the main stable coins over the years.
Overall I'm not encouraged about the move away from diversification and the increased dominance again of USDT, given the crucial role stable coins can play in giving crypto spending-utility linked to the US dollar, but that's the way things have gone over the last year!
Overall trends July 2022 - July 2023
The total market cap of all stable coins has decreased slightly from around $132 billion to $126 billion, which is VERY stable over the year, excuse the pun.
But the balance has changed DRAMATICALLY....
Top 4 stable coins by Market Cap....
The dominant story here is that people have been selling USDC and BUSD and USDT (Tether) has replaced both of them.
| Coin | July 2022 | July 2023 |
|---|---|---|
| USDT | 65 | 84 |
| USDC | 54 | 26 |
| BUSD | 17 | 4 |
| DAI | 7 | 4 |
While BUSD has been in the news more recently and seen a dramatic reduction, given that it's no longer being minted due to regulatory pressure, I think the decline of USDC is more of a story...
Only a year ago USDC was a contender with USDT, now it's nowhere, less than half the market cap of what's now a stand alone behemoth.
It seems that this is just because USDC hasn't recovered from the collapse of Silicon Valley Bank back in March where it had deposited over $3BN of its reserves.
It's slightly concerning that one institution going under can so drastically tank a stable coin.
The rest is small fry...
Once we drop below USD ever other coin is worth less than $1BN in total market cap, but at least there is a decent amount of diversity in these smaller coins.
Best of the rest...
How does HBD compare...?
The total supply of HBD is currently worth around $32 MN
This means it's sitting at 29th for marketcap by stablecoins.
It could potentially get into the T20 by the end of 2024 at current rate of growth, maybe even by the end of this year, but it's going to take a lot to boost it further.
Even USTC (TerraClassic) has a marketcap of $150M and that's sitting at 16th.
But maybe slow and steady wins the race!
StableCoins final thoughts...
I'm very happy to NOT be holding any stablecoins other than HBD, and I am encouraged to see the gradual increase of marketcap of HBD, there is surely a need for more diversity in the stablecoin market.
I've never trusted USDT and to have ONE coin with such a high level of dominance isn't exactly shock resistant!
Typo?
The total supply of HBD is currently worth around $32BN <--- (29th)
Even USTC (TerraClassic) has a marketcap of $150M <--- and that's sitting at 16th.
Oh yes thank you! $32M - wishful thinking maybe!
Mind editing it in the post? I just shared it on Reddit so wouldn't wanna give a false picture to readers.
Done cheers!
Yes. It should be correctly edited.
I believe is one of the best utilities in the market, without them, the crypto market is just a volatile jungle where is hard to keep your value. Even holding BTC, you need to have an iron stomach.
Fair point!
I am also very happy to hold HBD almost two years thanks %20 yearly interest rate.
It's a tasty return!
USDT keeps dominating the space.
I like their strategy and the fact that they are buying BTC with 10%/15% of their profits.
Ah I wasn't aware they were doing that, fair play!
https://reddit.com/r/CryptoCurrency/comments/15cu0ut/a_look_at_stable_coins_market_dominance_trends/
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Damn! 84%? That's huge!
Worringly huge and a massive change in a relatively short period of time!
Yeah... I don't even want to imagine the worse case scenario with Tether at 84% of the stablecoin market...