Stablecoin's dominance "peaks" amid expanding cryptocurrency "winter" The Ecoinomic

When traders and investors exit their crypto asset positions, they will often convert them into stablecoins before taking them off the exchange as fiat currencies. That exodus has been going on for the past six weeks, causing the stablecoin market share to grow.

Moreover, this is despite the decline in the supply of Tether, one of the largest in the world. It also defied major vulnerabilities caused by the collapse of Terra's UST stablecoin, which was the third-largest currency.

According to CoinGecko, the combined Market Capitalization of all stablecoins reaches $155 billion. The total cryptocurrency market capitalization is $943 billion, meaning stablecoins account for 16.4% of the total capitalization. Half of the top six cryptocurrencies by current market capitalization are also stablecoins.

Tether is still dominant.

Industry observer 'Byzantine General' has commented that the dominance of USDT and USDC has never been so high. The massive acquisition from the Tether ecosystem has led to supply cuts, meaning "the big players are completely out of the ecosystem," he added.

USDT and USDC dominance has never been this high before.

USDT mcap even declined because of large redemptions which means big players completely exiting the ecosystem.

Think this says something about how bearish sentiment is rn. pic.twitter.com/urYkSigUkk

— Byzantine General (@ByzGeneral) June 22, 2022

Tether is still considered the top stablecoin in terms of market share with 43%. Its supply has fallen about 19 percent since a record high of $83 billion in early May. There are currently $67 billion in circulation, according to the company's transparency reports.

Tether has cut about $3 billion in the past seven days as its supply continues to shrink. This has led to a gradual decline in market share as the same thing didn't happen with Circle's USD Coin.

USDC accounts for about 36% of the market share, with 56 billion coins in circulation. Moreover, it is not suffering the same supply cuts as its rivals and is hovering around all-time highs of circulation. Regulatory and treasury concerns continue to cast a shadow over Tether. This is why many people have turned to USDC for full support and management.

Both are dominating the stablecoin ecosystem with a combined market share of just under 80%.

Binance USD is rated as the third largest stablecoin with a supply of VND17.6 billion, accounting for 11.3% market share. BUSD supply has also gradually stabilized over the past four months, with no further mining or burning of tokens.