Stablecoin Dominance Tumbles Despite Tether (USDT) Notching Record High Market Cap: Report

The stablecoin market has seen its market cap drop for the 16th consecutive month. According to the latest crypto analytics platform, CCData, the number fell 0.82% to $127 billion in July, marking the lowest level since August 2021.

Stablecoin market cap dominance also fell to 10.3% from 10.5% in July. On the brighter side, stablecoin trading volume rose more than 16% to $483 billion in June. This was the first increase in monthly volumes since March.

• the a report He noted that the trend of increasing trading volumes may be due to the volatility in the market caused by the lawsuits against crypto giant Coinbase and Binance that were filed by the US Securities and Exchange Commission (SEC).
• The spike in trading activity following spot Bitcoin ETF orders placed by several TradFi firms, such as BlackRock and WisdomTree, could be another factor.

“As of July 17, only $219 billion has been traded – with volumes on track to record lower monthly volume with major assets including Bitcoin and Ethereum struggling to break key resistance levels at $32,000 and $2,000 respectively.”

• July saw the dominance of USDT, which achieved a new all-time high market cap of $83.8 billion, accounting for more than 65% of all stablecoins by market cap.
• During the same period, the market capitalization of USDC and BUSD pair declined significantly, declining by 3.01% and 4.57% to $26.9 billion and $3.96 billion, respectively.
• The trend marks the seventh consecutive month of decline for the Circle-backed stablecoin that previously saw investor confidence plummet as a result of the banking turmoil. This is also the lowest market cap for USDC since June 2021.