Stablecoins are a crypto barometer.
They're crucial to the crypto ecosystem, but they're also highly centralized. #USDT, in particular, holds a monopoly and carries significant risk.
Here are some numbers and my thoughts on stablecoins. 🧵
1/10
The market capitalization of stablecoins has been experiencing a decline for over six months. As per the most recent data, it stands at $129 billion, a significant fall from the previous year's value of $186 billion.
2/10
The market capitalization and the volume of trading assets are falling, which is concerning.
This is especially important because stablecoins are one of the primary assets traded on the crypto market.
3/10
#USDT continues as the leading stablecoin by market cap, controlling 64% of the market share.
This dominance can be attributed primarily to the events negatively impacting #BUSD and #USDC, whose market capitalizations have declined.
4/10
One noteworthy observation is the shift in the number of addresses holding significant amounts.
A discernible drop in USDC's figures contrasts starkly with the rise in USDT's, adding another layer to the overall picture.
5/10
Even though there has been a lot of talks and worry about USDT, it remains a strong player and has even reached ATH. It has proven that it can handle challenging situations.
On the other hand, USDC, which was supposed to be an alternative, hasn't lived up to expectations.
6/10
All these figures show that we are unlikely to see the bull run anytime soon. The fall in trading volumes is particularly alarming, and winter may still be here.
7/10
It's concerning that USDT continues to monopolize the stablecoin market. This situation poses significant risks, as what happened with USDC and BUSD demonstrated.
There is no guarantee that USDT won't experience similar issues in the future.
8/10
USDT has often been called one of the main risks in the crypto market. Perhaps it still is.
It's hard to imagine if any of the risks associated with USDT will materialize.
9/10
The good news is that more decentralized stablecoins are emerging, indicating an apparent demand for alternatives to centralized stablecoins.
It will be interesting to see what role these stables will play in the future.
10/10
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