Stablecoin Dominance Hits Lowest Since December 2021 Despite Record Monthly Supply
The dominance of stablecoins in the cryptocurrency market has dropped to its lowest levels since December 2021, according to new data.
According to crypto data provider Messari, stablecoins such as Tether (USDT), USD Coin (USDC), TrueUSD (TUSD) and Paxos (PAX) now account for just 15.8 percent of the total crypto market capitalization, down from a peak of more than 20 percent in December.
The decline comes despite a record monthly supply of stablecoins in February of over $122 billion.
The total market capitalization of all cryptocurrencies hit a new all-time high of $1.65 trillion in February, with Bitcoin (BTC) continuing to dominate with a market capitalization of $1.07 trillion.
However, the dominance of stablecoins has been steadily declining due to a combination of market capitalization growth in both Bitcoin and altcoins and an influx of new stablecoin issuance in the DeFi space.
Confido, for example, launched its own native stablecoin last month while decentralized finance platform Polygon has made a play for the governance-token market with its recently launched MATIC and REN tokens.
As the cryptocurrency markets continue to reach new heights, it remains to be seen if the dominance of stablecoins will rebound or continue to decline.