Glassnode data analyzed by CryptoSlate indicates that Ethereum (ETH)’s dominance over stablecoins has been increasing and reached its highest level in the last three months.
Ethereum’s dominance over stablecoins strengthens as ETH price tops $1,600.
The analysis includes the four major 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 line shows the ETH market cap.
ETH held unchallenged dominance over stablecoins between early 2020 and mid-2022. In the summer of 2022, stablecoin value added surpassed ETH, marking a first in ETH history.
Although ETH regained its dominance in late July 2022, stablecoins trumped ETH dominance once again for a short period of time in November 2022. Current data shows that ETH’s dominance over stablecoins has been strengthened ever since.
Exchanges’ stablecoin reserves have shrunk since the FTX crash. a recent CryptoSlate The analysis revealed that a total of 3.93 billion stablecoins had left exchanges since the FTX crash.
Meanwhile, the ETH price has been on an upward trajectory. ETH is trading for around $1623 at the time of writing, reflecting an increase of 33.23% over the last 30 days.
