Skip to main content

USDT Market Share Rises to All-Time High; what does that mean?

 


The market share of the stablecoin USDT rises to an all-time high! Are crypto investors fleeing USDT to protect themselves from looming volatility?


USDT market share increases to 7.34%

USDT stablecoin market share surges to 7.34%, beating all previous highs. When the crypto market crashed in 2020 and Bitcoin hit around $3,800 and Ethereum fell to around $90, USDT's market share was only around 4.16%. This means that the current market share is around 85% higher than at the time of the biggest crash in the crypto market in the last 5 years.


Is there a negative correlation of USDT market share and Bitcoin price?

Since Bitcoin is primarily traded against USDT, it is only logical that USDT's market share would increase when BTC price falls. After all, Bitcoin is mostly sold for USDT. Therefore, what you can see here is plausible: if the Bitcoin price is at a high point, the USDT market share is at a low point. Conversely, Bitcoin price is at a bottom when USDT market share is at a peak.


However, the phases in which the Bitcoin price rises do not automatically mean that USDT’s market share is falling. Nevertheless, a strong negative correlation can be seen, especially since November 2021.


While the market share of the USDT stablecoin is booming, the Bitcoin price is in free fall.


Bitcoin dominance versus USDT dominance

The USDT dominance behaves differently to the Bitcoin dominance. Because there is no clear correlation here. Nevertheless, the connection can basically be divided into two phases:


Between September and December 2020, BTC's market share increased while USDT's market share shrank. So more BTC was bought with USDT here.


Between May 2021 and June 2021, both Bitcoin and USDT increased in market share. Cryptocurrencies for BTC and USDT were increasingly sold here.


This behavior now appears to be happening again as both BTC dominance and USDT dominance have been increasing since April this year.


A sign that the crypto market is heading into a recession while stablecoins and BTC still remain the top choices as “store-of-value”?


The crypto market could now halve

The crypto market is about to bearishly break the golden ratio at the 50-month EMA at around $1 trillion market cap. The market capitalization of the crypto market could thus shrink to around USD 535 billion, because significant support is only expected for the crypto market between USD 535 and 770 billion.


This would put the crypto market back to a market capitalization that it already reached in 2018.


Bitcoin dominance could rise to 52%

The Bitcoin dominance is very bullish in the monthly chart. The MACD histogram continues to tick bullishly higher and the MACD lines remain bullish crossovers. Bitcoin 's market share could now climb to 52% before it meets resistance.


If the Bitcoin dominance also breaks this resistance, the market share could even rise to around 60%.


USDC stablecoin also climbs to record high

Stablecoin USDC is also climbing to a record high at 5.73%. This puts the combined market share of the two stablecoins USDC and USDT at around 13%. Stablecoins like BUSD are not even included.


However, if the stablecoins do not leave the exchanges and wallets by being converted into FIAT and paid out to bank accounts, that is a very bullish sign.


After all, there is great liquidity ready to buy up certain price ranges of Bitcoin , Ethereum and other cryptocurrencies .


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.


My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands
Post a Comment
Read more