- The market cap of USDC and BUSD is still growing, regardless of the current state of the crypto market.
- USDT, however, has posted no major increase, and its exchange reserves have been declining.
The market capitalization of the US dollar stablecoins, USD Coin (USDC), and Binance USD (BUSD) has continued to surge, regardless of the bearish state of the crypto market. Stablecoin supply growth stems from increasing demand and can sometimes serve as an indicator for crypto analysts and traders to predict the future state of the market.
BUSD, USDC Records More Supply Growth
Since the early months of the years, the market capitalization of the Binance stablecoin has been growing significantly amid increasing demand in the market at large. This was probably due to the market trust, cheap and fast processing time of the blockchain network, compared to the likes of Tether (USDT), which was based on Ethereum.
Even in this bearish state, BUSD circulating supply is still growing. At the moment, BUSD has surpassed a market capitalization of $9 billion and is rated the 10th largest cryptocurrency. Since the beginning of the year, the Binance stablecoin has added more than $8 billion in value (i.e., $1.05 billion – $9.6 billion), which accounts for over 810 percent increase year to date.
Likewise, USDC market supply has exceeded a total value of $25 billion, following the recent minting of $29.3 million worth of USDC.
USDT Exchange Reserve Drops
Tether hasn’t posted any significant increase for the largest stablecoin, USDT since the bears took over the market. In fact, USDT reserve on all cryptocurrency exchanges has been declining recently, according to data from CryptoQuant. Notwithstanding, USDT still holds the lion’s share of the market, and its market cap is greater than that of USDC, and BUSD, combined.
The supply growth of stablecoins, especially USDT, somewhat reflects investors’ pulse for buying coins. However, it remains unknown what the outcome will be this time, given that the USDT reserve has been declining and there hasn’t been any massive minting of USDT.