The total market capitalization of USDT overcomes that of XRP becoming the third largest cryptocurrency on CMC. Moreover, the combined market capitalization of USD stablecoin has risen over $10.3 billion.
The sell-off in the cryptocurrency markets. yesterday, caused a rush to USD as the demand for stablecoins rose considerably. The total USDT on crypto exchanges has been in a strong uptrend in 2020 reaching highs near $2.2 billion in April.
The USDT balance dropped below $1.5 billion in May (a 37% drop), probably affected by the halving speculation. Nevertheless, it is still greater than the aggregate supply in the past which has been around $1 billion.
The reason for the increase in March and April can be attributed to the surge of US dollar by the Feds, the sell-off in the market and preparation for the halving.
Can XRP Make a Comeback?
The total market capitalization of USDT and XRP on CoinMarketCap is in the $8.6-$8.7 billion range. Nevertheless, the data from Coinmetrics reveals that the supply of USDT is around $9.24 billion. The total liability in US Dollar as reported by Tether.io is $8,953,090,494.48.
A near 4% increase in XRP price could essentially restore XRP’s third position. A distant fourth on the list is Bitcoin [BCH] Cash with a market capitalization of around $4.2 billion.
Crypto Markets Fearful?
The total market capitalization of the crypto markets fell by 4.5%, the drops w.r.t. US dollar comparable to the rest of the markets. This seems to caused another exit towards stablecoins, as fear grew among investors. The crypto fear and greed index is currently at the confluence of a break-down to bearish levels.
The dominance of Bitcoin over the crypto market is around 67.4%. It has dropped around 3% from the highs around the halving pump. Nevertheless, sell-offs in Bitcoin tend to accelerate altcoin dumps as well. The current levels for support around $8,800-$9,000 will be paramount for the bulls.
Do you think the altcoins can make a comeback? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com