Bitcoin, the highest cryptocurrency by market cap, and Tether, the preferred stablecoin, have boosted their share of the overall crypto market. Measured as a proportion of the overall crypto market capitalization, Bitcoin dominance spiked to just about 50% early on Saturday morning.
At across the similar time, USDT dominance surged to over 8.2%.
Bitcoin Dominance Rises as Investors Flee Altcoin Market Crash
As is usually the case with rises in Bitcoin dominance, Saturday’s will increase coincided with a significant altcoin market crash.
The explanations behind the surge in Bitcoin dominance are twofold.
On one hand, the value of BTC has remained resilient in comparison with many altcoins. With the value of tokens like Solana and Polygon plummeting by over 20% in a single day, their market cap shrunk quickly.
Consequently, Bitcoin’s relative share of the overall crypto market cap has risen.
On the similar time, bitcoin’s comparatively secure worth provides buyers a level of safety. This drives extra funds out of altcoin markets and into bitcoin as buyers search refuge from falling costs.
BTC’s dominance charge has been steadily rising since November. And it elevated quickly throughout the March U.S. banking disaster. Following Saturday’s surge, bitcoin dominance is at its highest stage since 2021.
TUSD Depeg Boosts Tether
Whereas bitcoin’s robust liquidity makes it a beautiful approach for crypto merchants to exit altcoin markets, stablecoins additionally provide another threat aversion technique. And as the preferred dollar-pegged stablecoin, USDT gives a straightforward method to exit crypto market volatility with out absolutely off-ramping into fiat foreign money.
One other issue that might have influenced the rise in USDT dominance is the worrying worth deviations of fellow dollar-denominated stablecoin TrueUSD (USDT).
On Saturday morning, the coin turned briefly depegged from the greenback, falling as low as $0.9951.
The sudden dip in worth was adopted by an announcement from TrueUSD stating that TUSD mints by way of Prime Belief can be “paused for additional notification.”
“TUSD minting and redemption providers stay unaffected and will proceed to function as ordinary. We wish to guarantee you that our partnerships with different banking establishments stay intact, permitting for seamless transactions,” the corporate tweeted.
Disclaimer
In adherence to the Belief Venture tips, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to supply correct, well timed info. Nonetheless, readers are suggested to confirm information independently and seek the advice of with knowledgeable earlier than making any choices based mostly on this content material.