Price Analysis View Non-AMP

Stablecoin Dominance Ready to Strike Down- Will the Bullish Continuation for the Crypto Prevail?

Published by
Sahana Vibhute
google news

The stablecoins like USDT, USDC, etc experienced a wider adoption throughout the year 2022 as the bear market restricted the rally to a large extent. However, as 2023 began with a kickstart of giant price action, the demand for these stablecoins dropped. Therefore, the dominance of these tokens is plunging by a huge margin and presently testing one of the important support levels. 

Moreover, the strength of the rally also appears to be extremely weak and hence it may result in an explosive move toward the south. Moreover, the Trend Breakout Indicator(TBO) substantiates the weakening of the rally as it indicates the beginning of a deep bearish trend. 

The combined market cap of the top 2 stablecoins has plummeted from around 15% and currently hovering just above 10%. If the levels fail to sustain above these crucial levels, then a continued downtrend may slash the combined market cap below 10% to reach 9.69%. 

However, considering the individual market cap of both USDT and USDC, the USDC market capitalization has been slashing hard and faced rejection from $70 billion to drop below $65 billion. Meanwhile, the USDT’s market cap has been witnessing significant growth in the past week rising from $66.29 billion to reach levels just above $68 billion. 

Therefore, it can be considered as the market participants are again betting on USTD as the USDC’s market cap is plunging comparatively. Therefore, the USDT is believed to maintain its dominance against USDC while the bullish market sentiments may prevail for the cryptos in the longer term. 

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

Recent Posts

Top 5 Penny Cryptos With Huge Potential

Penny cryptos are an excellent way for investors to gain exposure to the crypto market…

March 24, 2023

Is Cardano Dead- Why ADA Price Not Impacted by the Bullish Market Sentiments?

While the crypto markets have been witnessing a sigh of relief as the Bitcoin price…

March 24, 2023

Top Reasons Why Bitcoin (BTC) Price Can Hit $40K Soon!

Bitcoin has been displaying strong bullish momentum in recent weeks. This is reflected in its…

March 24, 2023

Prepare For Altcoin Season Ahead: Here’s What On-Chain Data Suggest

The money flow from fiat currencies to Bitcoin, to large-cap altcoins, to mid-cap altcoins, and…

March 24, 2023

Crypto Predictions for the Next 24 Hours: BTC, ETH, LTC, DOT, LINK, AVAX

The crypto markets have once again turned green today, with many coins reclaiming levels close…

March 24, 2023

ARK Invest Takes Advantage of Market Dip with Bold $17.7 Million Coinbase Purchase

ARK Invest, the investment management firm founded by the iconic Cathie Wood, has made a…

March 24, 2023