As of January 2023, Ethereum (CRYPTO: ETH) holds most of the stablecoin market, accounting for 59.9% of all stablecoins.
The most recent report from CoinGecko shows that Tron (CRYPTO: TRX) is the second largest contender in the stablecoin market, with a market share of 26.5%.
The report highlighted that among the leading 5 chains, both Ethereum and Tron experienced notable increases in their market share, with gains of 5.5% and 5.96% year-over-year (YoY), respectively.
Except for Tron, stablecoins experienced a drop in market cap across all chains in absolute terms, with a 2.1% increase observed from May 2022 to January 2023 in the case of Tron. The other chains reported a decrease in double digits, with Solana (CRYPTO: SOL) being hit the hardest, with a substantial decline of 69.1% in the stablecoin market cap.
CoinGecko’s research indicates that despite a significant decrease in the overall cryptocurrency market cap, stablecoins have increased their dominance by 5.6 percentage points.
In January 2022, the total cryptocurrency market cap was $2.3 trillion, but it decreased to $1.1 trillion in January 2023.
Despite this decline, the market share of stablecoins has risen to 12.9% as of January 31, 2023, which is a 5.6% increase from their market share of 7.3% the previous year.
The research further stated that there were two instances when stablecoin dominance reached 17.8%. These instances were observed following the significant disruptions in the Terra ecosystem and the collapse of the now-defunct cryptocurrency exchange FTX.
