Sunday, June 23, 2024

Ethereum Regains Top Spot In Stablecoin Market With 60% Share While Rival Crumbles.

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.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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