- USDT overtakes XRP on CoinMarketCap’s rankings
- Tether’s market cap rose above XRP after $11 billion crypto dump
- Fear is growing in the digital asset market
Cryptocurrency News Today – recall an earlier report that the overall market cap of Tether’s USDT had overtaken that of Ripple’s XRP. This made Tether the third-largest crypto by market cap. Now, the combined market cap of USD-backed digital tokens has risen by a whopping $10.3 billion. Yesterday a crypto sell-off in the market triggered a rush to the USD.
This occurred because the demand for stablecoins has increased considerably in recent weeks. The total Tether on crypto exchanges has moved in an uptrend since 2020 began. It has since reached highs of $2.2 billion as of April 2020.
Tether’s Balance on Crypto Exchanges Dropped $1.5 Billion This Month
The Tether balance has reportedly dropped below $1.5 billion this month. This signifies a 37% drop. It means Tether was affected by speculation about BTC’s halving. Despite this decline, it is still higher than its aggregate supply from the past which was $1 billion.
The reason behind this increase between March and April is related to the surge of USD by the Federal Reserve, the sell-off in the digital asset market, and speculation about Bitcoin’s halving. The total market cap of USDT and XRP is within the $8.6-$8.7 billion range via CoinMarketCap. However, data from Coinmetrics show that the supply of Tether is $9.24 billion. Its total liability in USD is $8,953,090,494.48. Note that a 4% rise in the price of XRP could restore its position as the number three largest coin on CoinMarketCap.
Fear is Growing in the Crypto Market
The total market cap of the cryptocurrency market fell by 4.5% against the USD compared to other financial markets. Of cause, the coronavirus pandemic has a role in this. And it is looking more and more like there will be more interest in stablecoins, as fear continues to grow among investors.
At press time, the crypto fear and greed stat are currently at a confluence between a break-down into the bearish area. Bitcoin’s dominance of the digital currency market is now about 67.4%. The data shows that BTC’s dominance has declined by 3% from the highs it posted before the halving.
Nevertheless, crypto sell-offs in BTC typically accelerate altcoin dumps too. Hence, it is safe to say that the current support levels for BTC (at $8,800 and $9,000) will be essential for the bulls remain in play. As is always the case the digital market is highly unstable (volatile) and cannot be predicted accurately. Hence, traders are advised to be prepared for any outcome.