Since the depegging of USDC, the market cap of USDT has increased by $5.76 billion, the report adds. Currently, USDT holds a market dominance of 57.5%, the highest since June 20, 2021. Moreover, as BUSD stopped minting new tokens and USDC faced uncertainty after the collapse of its partner bank, USDT maintained its position as the dominant stablecoin. Additionally, TUSD stands out as the sole BTC and ETH trading pair on the exchange that charges zero fees. This increase can be attributed to Binance’s decision to resume trading pairs for TUSD on its platform and to convert $1 billion from its ‘SAFU Fund’ in BUSD to TUSD and USDT. Notably, the report adds that in March TUSD’s market capitalization experienced a significant surge of 82.6%, reaching $2.04 billion. These were restored after the Federal Deposit Insurance Corporation (FDIC) stepped in and revealed that it would be making every depositor at SVB whole, meaning the $3.3 billion of USDC’s reserves would not be lost.Īccording to CryptoCompare’s report, this was the highest daily volume recorded since November 10, when FTX collapsed. Stablecoins using USDC as collateral, including DAI, MIM, and FRAX, all fell as well.Īs a result, stablecoins’ dominance in the market fell from 12.6% to 11.4% after recording its lowest end-of-month market share since April 2022.ĬryptoCompare adds that the decline “highlights the rally in the prices of crypto assets amidst the recent depeg of USDC and other stablecoins.” Despite these declines, stablecoin trading volume reached $51.9 billion on March 14 after USDC and others restored their peg. 83 > For precious metals the Market Cap is calculated by multiplying the its price with an estimation of the quantity of metal that has been mined so far. Per the report, USDC depeg on March 10 after it was revealed a portion of its reserves were in it, to the point it hit $0.877 on March 11. Market cap can also offer insights into the potential risk and reward associated with various digital assets, with larger market caps typically indicating more established and stable investments, while smaller market caps may offer higher growth potential but carry greater risk.The total market capitalization of the stablecoins within the cryptocurrency space has fallen by 1.35% to $133 billion, the lowest it has been in 18 months, amid a US banking crisis that has been part of the reason behind the space’s decline for its twelfth consecutive month.Īccording to CryptoCompare’s latest Stablecoins & CBDCs report, the fall in stablecoins’ market capitalization followed the depeg of multiple stablecoins that occurred amid the collapse of Silicon Valley Bank, a cryptocurrency-friendly bank that held $3.3 billion of USDC’s reserves within it. It provides a simple and standardized way to compare the size and value of different cryptocurrencies, allowing investors to gauge their relative importance in the market. The relevance of market capitalization to cryptocurrency is significant. The total market cap parameter is calculated by collectively summarizing the market capitalizations of all cryptocurrencies in USD. As new cryptocurrencies emerged, market cap became an essential tool for comparing the size and potential of these assets, helping investors navigate the increasingly complex landscape of digital currencies. Cryptocurrency Market Cap Charts Total Market Capitalization and Volume, USD The chart below shows the historical data of global market capitalization and 24h volume. In the context of cryptocurrencies, market cap first gained prominence with the advent of Bitcoin, which demonstrated the potential of digital assets as an alternative form of money and investment. The concept of market capitalization has its roots in traditional finance, where it is used to measure the size and value of publicly traded companies. By understanding the history and relevance of market capitalization, investors can make more informed decisions and maximize their returns in the rapidly evolving world of digital currencies. Market capitalization, or market cap, is a critical metric in the world of cryptocurrency, offering valuable insights into the size and potential of various digital assets.
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