Ethereum stablecoin dominance reaches 3-month high News ▸ Ethereum ▸ Stablecoins
Ethereum stablecoin dominance reaches 3-month high
Ethereum's dominance over stablecoins strenghtens as the ETH price surpasses $1,600.
1 min read
Updated: Jan. 23, 2023 at 11:10 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Glassnode data analyzed by CryptoSlate indicates that Ethereum’s (ETH) dominance over stablecoins has been increasing and reached its highest in the last three months.
Ethereum’s dominance over stablecoins strengthens as the ETH price surpasses $1,600.
The analysis includes the top four stablecoins: Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and DAI (DAI).
The chart below represents a comparison of the ETH market cap to the aggregate value of these stablecoins since the beginning of 2020. The green line reflects the combined value of the stablecoins, while the black one shows the ETH market cap.
ETH held an unquestionable dominance over stablecoins between the beginning of 2020 and mid-2022. In the summer of 2022, stablecoins’ aggregate value surpassed ETHs, marking a first in the history of ETH.
Even though ETH recovered its dominance by the end of July 2022, stablecoins triumphed over ETH dominance once more for a short while in November 2022. Current data shows that ETH’s dominance over stablecoins has been strengthened since then.
Exchanges’ stablecoin reserves have been shrinking since the FTX collapse. A recent CryptoSlate analysis revealed that a total of 3.93 billion stablecoins had left the exchanges since the FTX crash.
In the meantime, the ETH price has been on an upwards trajectory. ETH is being traded for around $1,623 at the time of writing, reflecting a 33.23% increase in the last 30 days.
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Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Tether
$1.00047
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance USD
$1.00095
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Dai
$1.00000
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
USD Coin
$1.00004
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
