Bitcoin, Ether and Tether dominate the crypto sector
15 May 2020
Bitcoin, the world’s first and still largest cryptocurrency, continues to rule the crypto roost, and the sector is increasingly dominated by it and two others.
According to research by Messari, Bitcoin, Tether and Ethereum have made up around 90% of trading volume on digital asset exchanges so far this year among top 10 cryptocurrencies, up from 75% a year ago.
“The change follows a deep market crash in March, when Bitcoin as well as the more than 5,000 other coins listed on crypto exchanges nosedived,” reports Bloomberg. “Searching for safety, many investors also flocked to Tether, which is a so-called stablecoin, whose value is supposed to not deviate much, and is used as a conduit to purchase other coins.
Ether (ETH), the cryptocurrency of the Ethereum network, is currently the second-largest cryptocurrency by market cap, followed by Tether.
Meanwhile, after having shot up by over 70% in just two months, the value of assets for all stablecoins surpassed $10 billion for the first time on Tuesday, according to Coin Metrics.
“Stablecoin supply growth comes as more cryptocurrency traders choose to trade alternative cryptocurrencies (or altcoins) using dollar-backed digital tokens instead of Bitcoin,” noted Coindesk.
Tether has surpassed on Tuesday XRP as the third-largest cryptocurrency and is now the second-largest altcoin behind Ethereum’s Ether (ETH).
It now has a market cap of $8.79 billion, which is now bigger than XRP’s, $8.6 billion. USDT is currently second only to Ether as the largest altcoin in the cryptocurrency market.