Tether Rises to Fourth by Market Cap, Bitcoin and Crypto Markets Look Bleak

Published on by Cryptoslate | Published on

Gains in stablecoin dominance indicate that the market outlook is bleak.

Tether is now fourth by market capitalization with a total of over 1.8 billion USDT in circulation, while market dominance of stablecoins sits at highs of 2.3 percent.

The percentage dominance of stablecoins is correlated with the health of the market.

During bear markets, money leaves from Bitcoin and other altcoins and is converted into fiat, or held on standby in Tether and other USD-backed tokens.

At the moment, total market capitalization is roughly $104 billion, with stablecoins comprising $2.4 billion of that total, a 2.3 percent market dominance.

At the time, stablecoins in circulation amounted to $3.5 billion, just 1.5 percent of the market.

The increase from 1.5 to 2.3 percent dominance represents a 53 percent increase in stablecoins in circulation relative to overall market capitalization.

Thus, if these stablecoins re-entered the market into Bitcoin, XRP, Ethereum, or other altcoins, the overall market capitalization would likely increase as a result of demand-driven price increases.

Overall, the high percentage of the stablecoins to crypto ndicates a bearish market.

If market sentiment reverses, perhaps the cash on the sidelines could contribute to further price appreciation and potentially take crypto out of its trough.

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