- Demand for stablecoin increased while USDT supply reached its ATH.
- The coin’s social dominance jumped, signaling the first signs of a bull market.
The battle for stablecoin king can be done and dusted Tether [USDT] continues to prove that no other project in the sector can match the authority it has. On a number of occasions, AMBCrypto has done that revealed how USDT retained the top spot.
Realistic or not, here it is The market capitalization of USDC in terms of USDT
This time was no different, based on a new revelation from IntoTheBlock. According to the blockchain insight platform, USDT’s supply crossed the 84 billion mark on November 5.
New Milestone for USDT: Supply Surpassed 84 Billion and Reached an All-Time High Last Week! This represents a growth of 22% year-on-year.
🔗https://t.co/vSgB5HA3qC pic.twitter.com/F6qZv2AHTg— IntoTheBlock (@intotheblock) November 5, 2023
When the supply of cryptocurrency exceeds demand, the price can generally fall. But in the case of stablecoins it is not the same. The following applies here: the greater the supply, the greater the demand and adoption.
No other match for the stablecoin king
The jump represents an All-Time High (ATH) and a 22% increase year-over-year (YoY). After IntoTheBlock made the data public, the AMBCrypto team investigated the reasons for the increase. Our review found several reasons for USDT’s dominance.
One reason for this increase could be related to the market recovery. For example, Bitcoin [BTC], which started the year around $16,000 was now trading at $35,000. This increase is evidence that the bear market was almost over and the bull market was on its way.
When these types of signals arise, market participants typically view 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 de-pegged from the US dollar has been fewer. The remarkable period was during the Terra Luna [LUNA] collapse and FTX contamination.
Other reasons for the increase in supply may be related to declining confidence in the direction of the economy Circle [USDC]. This was largely due to the project’s links to the collapse of some banks earlier this year.
Maybe the bull is already there
Another metric that proves USDT’s dominance is Social dominance. According to data from Santiment, USDT’s social dominance had increased to 5.95% at the time of writing. USDC, on the other hand, had a dominance of a paltry 0.33%.
Source: Santiment
The rise in metric means that USDT received 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 many Worth 1,10,100 USDT today?
One of these is the night trading hours in the US. Another is when the bull market is at its peak or starting to pick up. Thus, USDT’s rise in this regard indicates that the market may continue to favor it over other options.
It might also not be amiss to mention that the bull market is starting to gain momentum.
