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As Bitcoin Drops Below $30k, Stablecoins Surpass $100 Billion In Total Supply

Bitcoin 2021/07/20 21:00 by Hououin Kyouma

Bitcoin has dropped below the $30k mark, while stablecoins go strong as they surpass over $100 billion in total supply.

Total Stablecoin Supply Is Now More Than $100 Billion

According to a report by Arcane Research, the total stablecoin supply has now surpassed the $100 billion mark, while Tether’s dominance is declining.

Here is a chart that shows the trend in the total supply and dominance of some popular coins:

Stablecoins Volume

The stablecoins total supply as reached a new height

There are a few interesting features in the graph. The total supply of these coins used to be only $11 billion in July of 2020, and now it seems to have risen $96 billion in the past 1 year, reaching about $107 billion today.

Tether (USDT) dominated the stablecoins market back then, accounting for 83% of the total market. But today it has declined to just 58% of the supply.

Related Reading | TA: Bitcoin Grinds Lower, Why BTC Bears Aim Larger Decline

On the other hand, the second-placed coin, USDC, has seen sharp growth, and it now accounts for 25% of the market. Nonetheless, Tether is still the most dominant crypto in this sector.

The company behind USDC, Circle, is currently in the process of going public with the help of a SPAC. In an investor presentation, the company revealed that they project USDC to rise to $83 billion by the end of 2022, and $194 billion by the end of 2023.

Binance USD (BUSD) places third after having overtaken DAI a few months back. BUSD has also seen some great growth over the past year.

While BTC continues its downtrend and dips below the $30k mark, 2 stablecoins have made their way into the top performers for the past week.

Related Reading | Billionaire Tim Draper Is Unfazed By Market Downtrend, Doubles Down On $250,000 Bitcoin Price Target

These two coins are Fei Protocol (up 0.82% in the last 7 days) and TerraUSD (up 0.08% in the past week). Here is a chart that shows how the the popular cryptocurrencies by market cap have performed in the same period:

Bitcoin % change in the last week

All the big coins seem to be down

As you can see in the above chart, Bitcoin and Ethereum seem to be deep in the red.

Bitcoin Price

At the time of writing, BTC’s price floats around $29.7k, down 9% in the past 7 days. Over the last month, the coin has dropped 14% in value.

Below is a chart showing the trend in Bitcoin’s price over the past 6 months:

Bitcoin Price

BTC continues its downtrend | Source: BTCUSD on TradingView

Bitcoin has finally dropped out of the $30k to $35k range that the coin has been stuck in for the past few weeks. It could mean more price action could be coming following a very stale market with minimal volatility.

Featured image from Pexels.com, charts from Arcane Research, TradingView.com

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