Glassnode data analyzed by CryptoSlate indicates that the dominance of Ethereum (ETH) over stablecoins has increased and reached its highest level in the last three months.
Ethereum’s dominance over stablecoins strengthens as ETH price surges above $1,600.
The analysis includes the four main stablecoins: Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and DAI (DAI).
The graph below represents a comparison of the market capitalization of ETH to the overall value of these stablecoins since the beginning of 2020. The green line reflects the combined value of the stablecoins, while the black shows the market capitalization of ETH.
ETH held undisputed dominance over stablecoins between early 2020 and mid-2022. In the summer of 2022, the global value of stablecoins surpassed ETH, marking a first in ETH history.
Even though ETH regained its dominance in late July 2022, stablecoins again triumphed over ETH dominance for a short time in November 2022. Current data shows that ETH’s dominance over stablecoins has been strengthened since then.
Stocks of stablecoins on exchanges have dwindled since the collapse of FTX. A recent CryptoSlate the analysis revealed that a total of 3.93 billion stablecoins had left the exchanges since the FTX crash.
Meanwhile, the price of ETH has been on an upward trajectory. ETH is trading for around $1,623 at the time of writing, which reflects an increase of 33.23% over the past 30 days.