Research from on-chain analytics provider Glassnode has revealed that the top three stablecoins represent more than 90% of the sector’s entire market cap. Glassnode’s Tuesday “The Week On-chain” report found that the top three stablecoins — Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) — have seen significant growth over the past six months to represent a combined capitalization of more than $60 billion, equal to 92.75% of the stablecoin market.
By contrast, six months ago, the combined stablecoin capitalization for those three was less than one-third of its current levels at $19.2 billion. This time last year, stablecoins were worth just $7 billion combined. The analysis compared the growth of stablecoins with Bitcoin’s (BTC) market cap, identifying a clear correlation between the two. The report also found that USDT’s supply has continued to increase during recent weeks despite BTC trending sideways, whereas growth for USDC and BUSD has slowed.
The report notes historic lows for its Stablecoin Supply Ratio (SSR) metric, which measures Bitcoin’s market cap relative to the total stablecoin supply to estimate the global “buying power” of the stablecoin sector. When BTC prices are low, the supply of stablecoins can buy a larger portion of it to push prices up. Conversely, as prices increase, the available stablecoins can purchase less, which reduces the influence on prices.
USDT, USDC and BUSD represent 93% of stablecoin market cap, Cointelegraph, Apr 14
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