Research by chain analysis provider Glassnode found that the three largest stable currencies account for more than 90% of the sector’s total market cap.
Glassnode’s April 13 report on the chain found that the three largest stable currencies – Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) – have grown significantly over the past six months, representing a total capital of over $ 60 billion. , Accounting for 92.75% of the foreign exchange market stability.
On the other hand, total stablecoin capitalization for these three was less than a third of the current level of $ 19.2 billion. At this time last year, the coin heaps were only worth $ 7 billion.
The analysis compared the rise in the stablecoins to the bitcoin’s market capitalization and revealed a clear correlation between the two. The report also indicated that USDT offers have continued to rally in recent weeks despite the sideways trend in BTC, while the USDC and BUSD gains have slowed.
Market value of BTC with constant supply: Glass node
The report refers to historical deflationary periods to calculate the Stable Supply of Currency (SSR), which measures the market value of Bitcoin relative to the total supply of stable currencies to assess the global “purchasing power” of the stable currency sector.
When BTC prices are low, the coin stock in the stack can buy a significant portion of it to drive up the rates. Conversely, with higher prices, the available stable currencies may buy less, which reduces the effect on prices. Glassnode concluded:
“The growth in the steady currency supply from 2020 to 21 years allowed the SSR account to be kept close to its historical lows, indicating the relatively high purchasing power of the dollar in the digital form. The demand for digital dollars appears to be in line with the demand for bitcoins. And cryptocurrencies in general. ”
According to Tether’s transparency report, Tether’s market value has more than doubled since early 2021 and is currently at a record high of $ 45.6 billion. Circle reported a permanent hike of $ 11.5 billion on April 9, while Goingeko estimated its BUSD bid at $ 5.1 billion on April 13.
On April 7, Circle CEO Jeremy Aller predicted that the USDC stablecoin may soon overtake PayPal in rated value.