Analysis of on-chain stablecoin data reveals decline in USDT dominance

In 2019, Tether (USDT) had a planetary stablecoin dominance of 89%, but it has since fallen to conscionable nether 50%, according to on-chain information provided by Glassnode — analyzed by CryptoSlate.

Throughout 2020 and 2021, different stablecoins similar USD Coin (USDC) and Binance USD (BUSD) began to rise, with USDC reaching 33% dominance and BUSD reaching 16% dominance. DAI, connected the different hand, remained constant.

Stablecoins: Supply Dominance (Relative) / Source: Glassnode.com

Recovery connected the horizon

In May, USDT saw $20 cardinal successful redemptions but has since begun to recover. The maturation of stablecoins slowed, with a highest of $24 cardinal regular inflows. Outflows besides accrued but peaked astatine lone $8 billion, indicating that astir of the superior remains stablecoins.

USDT remains the lone stablecoin to person made higher highs successful regular transactions and inactive spot beardown demand.

Stablecoins: Aggregate Supply Net Position Change / Source: Glassnode.com

Total stablecoins connected exchanges

There is astir $40 cardinal worthy of stablecoins connected exchanges, with a full of $4 cardinal being redeemed this week alone. This indicates that investors inactive judge successful stablecoins and are apt waiting for the adjacent bull tally oregon dip.

All Stablecoins: Balance connected Exchanges / Source: Glassnode.com

By analyzing the STBL virtual plus Glassnode information – which aggregates information from each ERC20 stablecoins – we tin spot the maturation of stablecoins was important up until March, reaching a highest of $24 cardinal successful regular redemptions.

Risk-on to Risk-off

This year’s risk-off situation has shifted from inflows to outflows for stablecoins, though the outflows person been comparatively small, reaching a maximum of $8 billion. Despite this, the bulk of superior remains successful stablecoins.

Stablecoins: Transaction Count / Source: Glassnode.com

USDC saw a 10% emergence implicit the aforesaid play and has since accrued to 33%. It peaked successful June with 38%, starring to speculation astir a imaginable flip of USDT.

On the different hand, BUSD did not summation important traction until the 2nd fractional of the year, with a dominance of 10%. It has since grown to 16% dominance and has been gaining momentum, peculiarly since the illness of FTX.

The station Analysis of on-chain stablecoin information reveals diminution successful USDT dominance appeared archetypal connected CryptoSlate.