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Purebun.com – Stablecoin Dominance Increases, Contributing 15 Percent of All Crypto Value. For the first time, three stablecoins that are among the top ten digital currencies in terms of market valuation provide 15 percent of the value for the entire crypto market. The three stablecoins are USDC, USDT and BUSD.
While Terra USD (UST) is losing value, there are still three stablecoins in the top 10 today, as Binance USD (BUSD) is among the seventh largest crypto asset as far as market cap is concerned.
Reporting from Bitcoin.com, Wednesday (15/6/2022), two months ago on April 11, the stablecoin economy was worth USD 190 billion or around IDR 2.765 trillion, but today the stablecoin market valuation is now at USD 159 billion.
Previously in April. the entire crypto economy is worth USD 2.03 trillion and today it is worth around USD 1.15 trillion. Even though UST Terra’s fall saw billions of dollars leave the stablecoin economy, UST briefly dominated more than it did when it was close to $200 billion.
Stablecoins also account for a lot of trading volume, and at the time of writing, fiat-pegged tokens have seen a trading volume of USD 46.1 billion, while all crypto assets combined brought in USD 71.6 billion. Data shows 64.38 percent of all digital currency trades today are exchanged for stablecoin pairs.
USDT Trading
For example, tether trading (USDT) accounts for 60.26 percent of global bitcoin (BTC) trading volume, while BUSD commands 10.05 percent. USDT and BUSD are the two top trading pairs for BTC, according to the cryptocomapare metric.
Tether (USDT) is still the king of stablecoins with a market valuation of USD 72 billion which represents more than 6 percent of the entire crypto economy. USD Coin (USDC) is the second largest stablecoin by market cap with a value of USD 53.7 billion.
USDC dominates today over 4 percent of the crypto economy and USDC and USDT combined make up 76.92 percent of all stablecoin dominance of 13.40 percent.
BUSD, henceforth, represents 1.58 percent of the entire crypto economy. That leaves a little over 1 percent of the crypto economy coming from stablecoins like DAI, FRAX, TUSD, and USDP.
Analyst Calls Bitcoin Price Potential to Drop Below IDR 294.6 Million
Previously, the movement of bitcoin was quite stable on Wednesday morning 15 June 2022 at around USD 22,000 or around IDR 324 million after collapsing since the previous 2 days amid fears of inflation and broader macroeconomic weakness.
The declines came after the US released worse-than-expected inflation data in May in a note last week, which saw inflation rise by 8.6 percent compared to a year ago.
Traders now expect a rate hike of more than 175 basis points through September, which is expected to lower corporate earnings and slow consumer spending.
Crypto traders and analysts share a bearish view. For one, FxPro senior market analyst Alex Kuptsikevich said in a note Tuesday market sentiment remains in “extreme fear” mode as bitcoin suffers its biggest decline since early 2020.
Kuptsikevich added that the bitcoin price could fall below USD 20,000 or around Rp. 294.6 million before long-term buyers return to the market, provided macroeconomic sentiment improves.
Bitcoin Price Drops Follow Global Stock Exchanges
Co-CEO at cryptocurrency exchange-traded product provider ETC Group, Bradley Duke, shares the view that bitcoin could retest 2017 levels with the next major support at USD 20,000.
“Crypto markets are in extreme fear mode, with the only recent comparable period of low sentiment extended into March 2020,” Duke said.
Meanwhile, some investors said the decline in bitcoin’s price was linked to a decline in global stocks.
For example, executive director at crypto asset hedge fund ARK36, Mikkel Morch explained that the global economic environment has become very difficult to navigate for investors involved in all types of markets.
“Over the past few years, cryptocurrencies have become a global macro asset and it is expected that they will react negatively now that investors realize central banks have not reacted nearly as aggressively as they would have needed. to control inflation,” concluded Morch.
