Investors are fleeing to the safety of US dollar-denominated tokens as the crypto market suffers from the recent collapse of FTX, causing the world’s leading top 3 crypto stablecoins to increase their market share even further.
According to data presented by Crypto Presales, the combined market share of Tether, USD Coin, and Binance USD more than doubled this year, jumping from 6% in January to 15% in December. On the other hand, the two largest cryptocurrencies, Bitcoin and Ethereum, saw their market shares drop by 1% and 2% year-to-date.
Binance USD Market Share Increased Four Times, Tether’s More than Doubled
Undoubtedly, 2022 has been one of the most challenging years for the crypto industry. The crypto price crash wiped off more than $1.3trn in market value, caused the biggest drop in the number of cryptos so far, and layoffs in companies across the industry. The collapse of the world’s second-largest crypto exchange, FTX, shook the market even further.
As a niche currency in the crypto world, stablecoins showed much more resilience to market volatility seen throughout this year and increased their market share substantially.
The largest and oldest stablecoin and the third biggest cryptocurrency behind Bitcoin and Ethereum, Tether (USDT) more than doubled its market share in 2022. According to CoinMarketCap data, Tether had a 3.5% market share at the beginning of the year, while its market cap amounted to $78.3bn. Although its market cap dropped by 16% since then, reaching $65.7bn last week, Tether’s market share more than doubled and now stands at 7.7%.
The market cap of the world’s second-largest stablecoin, USD Coin, stood at $42.7bn last week, almost the same as in January. Still, its market cap jumped from 1.9% to 5% in this period.
Although much smaller than Tether and USD Coin, Binance USD has seen the biggest market share increase this year. The combined value of all BUSD coins amounted to $14.6bn in January, representing around 0.6% of the total crypto market cap. Since then, the BUSD market cap jumped to $22.1bn, while its market share increased four times to 2.6%. Together, the three stablecoins now make 15.3% of total crypto market value, up from 6% in January.
Unlike Bitcoin, Ethereum and Cardano, whose market shares dropped in 2022, all other cryptocurrencies on the top ten list have also increased their market shares.
Top 5 Crypto Coins Now Make 74% of Total Market Value, up from 68% in January
Although its market share dropped by 1% year-to-date, the world’s most expensive digital currency, Bitcoin, still has the largest share in the crypto space. The CoinMarketCap data show BTC now accounts for 38% of the global crypto market cap, with the combined value of all BTC coins standing at $329.1bn last week, 62% less than a year ago.
Ethereum’s market cap plunged 64% year-to-date to $154.6bn, making around 18% of the total market, down from 20% in January.
Tether, USD Coin, and BNB account for another 17.8% of the global crypto market cap. Together the five largest cryptocurrencies make 74% of the total market value, up from 68% at the beginning of the year.