Stablecoin Dominance Declines Despite Record High Market Capitalization Of Tether (USDT): Report

The stablecoin market saw a decline in market capitalization for the 16th consecutive month. According to CCData, the latest crypto analytics platform, the figure fell 0.82% to $127 billion in July, the lowest level since August 2021.

The market cap dominance of stablecoins also dropped from 10.5% to 10.3% in July. However, on the positive side, stablecoin trading volume increased by over 16% in June to $483 billion. This was the first increase in monthly volume since March.

• reports noted that the rising trading volume trend could be due to market volatility resulting from lawsuits brought by the United States Securities and Exchange Commission (SEC) against crypto giants Coinbase and Binance.
• The uptick in trading activity could be another factor, following the filing of spot bitcoin ETF applications by several TradeFi firms such as BlackRock and WisdomTree.

“As of 17 July, only $219bn has been traded – with major assets including bitcoin and ethereum struggling to break key resistance levels of $32,000 and $2,000 respectively on their way to record low monthly volumes.”

• July saw the dominance of USDT, which registered a new all-time high market cap of $83.8 billion, accounting for over 65% of all stablecoins by market cap.
• During the same period, the market cap of USDC and BUSD declined significantly, falling 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, which previously saw a dent in investor confidence as a result of the banking turmoil. This is also the lowest market cap for USDC since June 2021.

The stablecoin market saw a decline in market capitalization for the 16th consecutive month. According to CCData, the latest crypto analytics platform, the figure fell 0.82% to $127 billion in July, the lowest level since August 2021.

The market cap dominance of stablecoins also dropped from 10.5% to 10.3% in July. However, on the positive side, stablecoin trading volume increased by over 16% in June to $483 billion. This was the first increase in monthly volume since March.

• reports noted that the rising trading volume trend could be due to market volatility resulting from lawsuits brought by the United States Securities and Exchange Commission (SEC) against crypto giants Coinbase and Binance.
• The uptick in trading activity could be another factor, following the filing of spot bitcoin ETF applications by several TradeFi firms such as BlackRock and WisdomTree.

“As of 17 July, only $219bn has been traded – with major assets including bitcoin and ethereum struggling to break key resistance levels of $32,000 and $2,000 respectively on their way to record low monthly volumes.”

• July saw the dominance of USDT, which registered a new all-time high market cap of $83.8 billion, accounting for over 65% of all stablecoins by market cap.
• During the same period, the market cap of USDC and BUSD declined significantly, falling 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, which previously saw a dent in investor confidence as a result of the banking turmoil. This is also the lowest market cap for USDC since June 2021.