What is the reason behind today’s crypto decline? The horizon reveals an approaching shift towards stablecoins.
The global cryptocurrency market is currently experiencing a correction, causing some investors to shift their focus towards stablecoins. According to data provided by CoinGecko, the total market cap of cryptocurrencies has decreased by 0.4% in the past 24 hours, dropping from $2.38 trillion to $2.34 trillion. However, the daily trading volume has increased by 27%, surpassing $52 billion.
Stablecoins are currently dominating the trading volume, with USDT (Tether) ranking first with a daily trading volume of over $34.5 billion. According to CoinGecko, USDT has a total market cap of $110 billion at the time of writing. Additionally, the 24-hour trading activity of USDC (USD Coin) has surged by 22%, reaching $3.56 billion. FDUSD has also seen a significant increase in daily trading volume, surpassing $4.5 billion. However, DAI’s 24-hour trading activities have decreased by 17.2%, falling to $652 million.
According to data from CryptoQuant, the overall bearish momentum in the market is reflected in the Coinbase Premium trend, which suggests a “wait and see” approach. The Coinbase Premium momentum is currently in the positive zone, and traders are patiently waiting for the pattern to repeat for the fifth time in the past two years. The analyst suggests that waiting for the trend to turn negative before investing in the rebound may lead to better chances of success.
Currently, 88% of the top 200 cryptocurrencies are in the red zone, according to CoinGecko. Despite the downturn, Bitcoin (BTC) has gained 1.4% in the past 24 hours and is currently trading at $61,660. Ethereum (ETH) has seen a 0.6% increase in price over the past day and is currently valued at $2,925.
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