- Demand for stablecoin increased, while USDT’s supply reached its ATH.
- The coin’s Social Dominance jumped, indicating early signs of the bull market.
The battle for the stablecoin king may be done and dusted as Tether [USDT] continues to prove that no other project in the sector may be able to match the authority it has. On a number of occasions, AMBCrypto has disclosed how USDT has maintained the top spot.
Realistic or not, here’s USDC’s market cap in USDT’s terms
This time, it was no different, based on a new revelation by IntoTheBlock. According to the blockchain insight platform, USDT’s supply crossed 84 billion on 5 November.
New milestone for USDT: Supply surpassed 84 billion, setting an all-time high just last week! This represents a 22% year-over-year growth.
🔗https://t.co/vSgB5HA3qC pic.twitter.com/F6qZv2AHTg— IntoTheBlock (@intotheblock) November 5, 2023
Typically, when a cryptocurrency supply outweighs demand, its price may drop. But in the case of stablecoins, it is not the same. Here, the greater the supply, the more the demand and adoption.
No other match for the king stablecoin
The jump represents an All-Time High (ATH) and a 22% Year-on-Year (YoY) increase. After IntoTheBlock disclosed the data, the AMBCrypto team looked into the reasons for the hike. From our evaluation, there were several reasons for USDT’s dominance.
One reason for this increase could be linked to the market recovery. For example, Bitcoin [BTC], which started the year around $16,000 was now trading at $35,000. This increase is a testament that the bear market was almost at its end, and the bull market was incoming.
Usually, when signs like this arise, market participants take it as an opportunity to arm themselves with stablecoins. It is also not surprising that USDT is the preferred option for the broader market.
Unlike other stablecoins, the number of times USDT has depegged from the U.S. dollar has been fewer. The noteworthy period was during the Terra Luna [LUNA] collapse and FTX contagion.
Other reasons for the hike in the supply could be linked to the decrease in trust toward Circle [USDC]. This was largely because of the project’s links with some banks’ collapse earlier in the year.
The bull may already be here
Another metric proving USDT’s dominance is Social Dominance. According to data assessed from Santiment, USDT’s social dominance had increased to 5.95% at press time. USDC, on the other hand, had a dominance of a paltry 0.33%.
Source: Santiment
The hike in the metric means that USDT was getting a lot of hype compared to other cryptocurrencies in the top 100. A quick refresher could be linked to two different periods when social dominance is at its highest.
How much are 1,10,100 USDTs worth today?
One is the U.S. overnight trading hours. Another is when the bull market is at its peak or is starting to pick up. So, USDT’s increase in this regard suggests that the market may continue to prefer it over other options.
Also, it might not be out of order to mention that the bull market is starting to gain momentum.