SNEAK PEEK

• Santiment raises concerns about the current state of stablecoins, which have experienced a decline in their total market cap.
• Despite the decline in market cap, large investors hold significant amounts of popular stablecoins.
• The trend of declining stablecoin market cap and decreasing demand may indicate a potential shift in market dynamics.

Santiment, a leading cryptocurrency market data provider, has raised concerns about the current state of stablecoins, which are designed to maintain a stable value relative to a particular asset or basket of assets.

Despite a significant decline in the total market cap of the top stablecoins over the past six months, large investors known as whales and sharks continue to hold substantial amounts of popular stablecoins like USDT, USD Coin (USDC), Binance USD (BUSD), and DAI.

💵 The combined top #stablecoin market cap has dropped quite considerable over the past 6 months. However, whale and shark holdings of $USDT, $USDC, $BUSD, and $DAI continue to remain high. Read our latest take on what to make of the unstable stables. ⚖️ https://t.co/lUPxUrjJLC pic.twitter.com/iS3Vp0gJkI

— Santiment (@santimentfeed) May 9, 2023

Recent data suggest that the populations of sharks and whales have peaked. Tether, Dai, and Binance USD have all experienced a pause in their climb, while USD Coin is the only cryptocurrency experiencing significant accumulation by large holders.

This data indicates that the populations of sharks and whales have peaked and that Tether, Dai, and Binance USD are no longer seeing significant growth. However, USD Coin is experiencing a surge in accumulation by large investors, suggesting that it is the preferred cryptocurrency for many in the market.

Since mid-April, Bitcoin has been experiencing a mild retracement, while the market capitalization of stablecoins has also been shrinking. This trend has been observed over the past few weeks, indicating a potential shift in market dynamics.

Bitcoin’s retracement has been moderate, but it has been enough to catch the attention of investors and analysts alike. As a result, there has been a decrease in demand for stablecoins, leading to a decline in their overall market cap.

The crypto market’s total volume has decreased by 21.48% over the last 24 hours, currently at $30.60 billion. The importance of DeFi alone is $2.35 billion, accounting for 7.68% of the total crypto market’s 24-hour volume. Meanwhile, all stablecoins have reached $27.47 billion, making up a significant portion of the entire crypto market’s 24-hour volume at 89.78%

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• Source: https://investorbites.com/usd-coin-usdc-emerges-as-top-pick-among-stablecoins-despite-market-retracement/