XRP and Its Major Competitor TetherColin Baseman
According to the latest statistics, stablecoin Tether seems to have surpassed XRP. After ETH it is now the second-largest cryptocurrency in the crypto industry.
Tether’s USDT has taken the third position as the biggest cryptocurrency – it is now larger than XRP. Their market caps are 8,79 billion USD and 8,6 billion USD respectively. USDT is now following ETH, which makes it the second-biggest crypto in the crypto realm.
The USDT supply is constantly increasing, which explains why the market cap has also increased. Next, the greatest part of the crypto rotates on the ETH blockchain. Exchanges have experienced incredible USDT inflows, right before the halving event.
It’s a common practice for exchanges to possess huge amounts of USDT, especially before the mentioned BTC event. Analysts consider it a bullish tendency for BTC, and what most predict is that there might be a great number of investors ready to purchase crypto with USDT.
Cointelegraph reports that part of USDT will stay in wallets while some of it will transform into cash. However, there will be plenty of people who will wish to put USDT in BTC. Watching the USDT percentage fluctuate a couple of days or even hours before BTC’s reaction makes the former a more appealing alternative for some investors. Knowing the fluctuations ahead gives more advantages and options.
Some Stablecoins Lose Their Positions
Market capitalization triggered another phenomenon and now we witness how USDT dwarfs other stablecoins. Trading volume has its influence, too. Tether’s expansion beyond the U.S. currency is significant – gold, the CNHT and Yuan-attached stablecoins have been launched at last.
TUSD is now behind. And so are PAX and USDC. What the market shows is that USDT/BTC pair is more popular than any other mix. April proved that over seventy percent of BTC was traded into fiat currency or stablecoins.
Although the growth of USDT is quite impressive, PAX and USDC keep on gaining popularity – they are still very popular and represent approximately four percent of all Bitcoin-to-stablecoin volume.
Other stablecoins are keeping growing, but the USDT/BTC pair makes up ninety percent of all BTC traded into stablecoins nowadays.
Stablecoin Decreased Its Volume Last Month
Trading volume seems to have slowed down and in April it was lower than in March, although the USDT market cap growth was significant. In April, BTC/USDT trading fell and was 16,1 million. If we compare it to March, it was twenty-six percent lower – back then it was 21,6 million BTC.
The USDC along with other stablecoins experienced a similar phenomenon. At the same time, PAX faced 0,85 BTC worth of volume last month, which was twenty-seven percent greater than that of March.
Stablecoins are very likely to keep on gaining popularity thanks to their features that give more opportunities even to participants who do not invest in the crypto industry directly. Another aspect we should mention is that the interest in the crypto is growing, which most regard as a bullish sign for BTC. Researchers have noticed how USDT inversely correlates to the BTC price.
Still, the current demand is the most essential factor – it keeps growing, but this tendency occurs for other reasons and factors than halving. BTC may serve as an instrument to hedge investment risks, for example.
This year, the BTC supply has slowed down – some of the strongest institutional investors are not completely confident about this asset class at present. It will last quite some time for BTC to strengthen its position and reputation in the digital environment.
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