When traders and investors exit their positions of crypto assets, they usually convert them into stablecoins before withdrawing them from exchanges into fiat. This exodus has been going on for six weeks, leading to an increase in stablecoin market share.

Moreover, this despite the reduction in supply of the largest in the world, Tether. This is also despite the massive hole left by the collapse of Terra’s UST stablecoin, once the third largest.

According to CoinGecko, the combined market capitalization of all stablecoins is $155 billion. The total crypto market cap is $943 billion, which means stablecoins make up 16.4% of the total. Half of the top six cryptocurrencies by market capitalization are now stablecoins.

The attachment remains dominant

Industry watcher ‘Byzantine General’ says USDT and USDC dominance has never been higher. Large takeovers in the Tether ecosystem have led to a reduction in supply, meaning “big players are leaving the ecosystem completely,” they added.

Tether remains the leading stablecoin in terms of market share, which is 43%. Its supply has fallen by 19% since its record high of 83 billion USDT in early May. There is currently 67 billion USDT in circulation, according to company transparency report.

Tether has slashed around $3 billion in the past seven days as its supply continues to shrink. This leads to a decrease in market share, as the same does not happen with Circle USD coin.

USDC has a 36% market share, with 56 billion coins in circulation. Additionally, it hasn’t experienced the same supply cuts as its rival and is hovering around unprecedented levels of circulation. Regulatory and cash flow issues continue to overshadow Tether. This is why many have switched to USDC, which is fully supported and regulated.

These two dominate the stablecoin ecosystem with a combined market share of just under 80%.

Binance USD is the third largest stablecoin with a supply of 17.6 billion coins, giving it a market share of 11.3%. BUSD supply has been stable for the past four months with no further minting or burning of the token.

Tether to run GBPT

On June 22, Tether announced that it was launching another stablecoin. The new addition will be called GBPT, pegged to the British pound.

It will launch in July, becoming the company’s fifth stablecoin after USDT, EURT, Chinese Yuan CNHT and Mexican Peso pegged to MXNT.

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