24/7 Cryptocurrency News

USD Dominance in Crypto Market on The Fall, Bearish Sentiment Continues

The drop in institutional participation in crypto market has led to the decline in USD trades. Stablecoins benefits from this developments.
Published by
USD Dominance in Crypto Market on The Fall, Bearish Sentiment Continues

The US regulators have been cracking down on the crypto space for a while. As a result, it becoming harder for companies to access USD to buy digital assets.

The total number of payment providers is shrinking in the United States and also stablecoins, which have been the foundation of crypto, have seen their dominance waning since the collapse of the crypto exchange FTX.

Considering the trading volume of the world’s largest cryptocurrency, the Dollar-denominated BTC has continued to drop. On the other hand, Euro and Tether-denominated Bitcoin pairs have been gaining traction since November 2022. In its report on Monday, March 6, blockchain analytics firm Kaiko reported:

The euro certainly presents an opportunity, but when looking at the market share of volume for USD-denominated pairs, we see a broader story emerge: that of the declining use of the dollar in crypto. Since the FTX collapse, USD market share has fallen consistently relative to USDT, USDC, and euro trading pairs.

Clara Medalie, director of research at Kaiko, said that the decline in USD after FTX’s collapse could be majorly linked to a drop in institutional trading activities. She added that institutional trading desks usually prefer settling their trades in dollars instead of stablecoins.

Stablecoins On the Rise in Crypto Market

In the past, traditional banking platforms have played a key role as a reliable on-and-off ramp between crypto platforms and hard currencies. But amid the FTX collapse, US banks have been cutting down their association with crypto firms.

Amid the recent downfall of crypto-focused bank Silvergate Capital, stablecoins are once again gaining traction among traders. In its report, Kaiko stated that the number of fiat trading pairs listed by exchanges has dropped since the rise of stablecoins. Last year in 2022, the total number of dollar-denominated trading pairs across all crypto exchanges dropped to 326 from 400 a year ago. On the other hand, the euro-denominated trading pairs jumped from 96 to 125.

Crypto Market Bearish Sentiment

After last week’s correction, the broader crypto market has entered consolidation. But on-chain data from CryptoQuant shows that the funding rates have been on a decline and the overall sentiment has remained largely bearish. CryptoQuant contributor caueconomy writes:

The funding rate of perpetual futures normally signals the current market bias, at which point traders build short positions. If we have more leverage building and bearish bets in this setup we could have a price recovery driven by cascading shorts liquidations.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025