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Tether [USDT]’s market cap dominance of stablecoin market down to 75%

Priya

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Tether [USDT]'s market cap prominence in stablecoin market down to 75%
Source: Unsplash

Tether [USDT], one of the most controversial stablecoins of 2018, continued to gain the cryptocurrency market’s attention this year. From speculations and allegations over the coin not being backed by the U.S Dollar against its claims in 2018 to becoming a coin not being entirely backed by the U.S dollar in 2019, the coin made headlines all year long.

Taking all this into consideration, Ceteris Paribus, a Twitter user, pointed out that the market cap of Tether witnessed a significant drop over the past year. At the beginning of 2018, the coin had control over the entire stablecoin market. However, it witnessed a significant drop towards the end of November 2018.

Based on the post, Tether conceded its market to Circle’s USD Coin [USDC], TrueUSD [TUSD], Paxos Standard [PAX], DAI, and the Gemini Dollar [GUSD]. Nonetheless, Tether still held a majority of the market cap, reigning over 75% of the entire stablecoin market. The cryptocurrency was followed by USDC with control of around 9% and TUSD with 7% control of the entire stablecoin market cap. The rest was covered by DAI and Gemini Dollar.

Source: Twitter

Source: Twitter

HODL_monk, a Reddit user, stated that the reason for USDC gaining momentum in the stablecoin market was Coinbase. The user said,



“Coinbase just put a BIG boost on USDC, by making it the only way to online fiat to crypto without fees on Coinbase Pro. I will probably be using USDC for that reason alone, and I doubt I will be the only one.”

Cthulhoo, a Redditor said,

Source: Reddit

Source: Reddit

To this, Nullius_123 stated,

“I think that once DAI accepts BTC (and other assets) as collateral for its lending system, DAI could become the major player in the stablecoin landscape. It is the only stablecoin that is open and transparent. We don’t even know if Tether is fully capitalized. I am astonished that anyone would risk their capital with it.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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