|

Stablecoins overtake bitcoin with the highest transfer value in the crypto market

Bitcoin lost about a percent in a week, and at the beginning of the new working week, the coin is trading around $9,200. The leading stock indices have also remained in a sideways price trend over the past week. Such weak dynamics can be seen as the calm before the storm. Participants of the crypto market are frozen in anticipation of the decisive new factor that will move the market from it's deadlock.

In the meantime, we are witnessing a continued decline in BTC trading volumes. According to CoinMarketCap, they declined by another 16% over the week to the level of about $13 billion. If we take into account the data of aggregators, which focus on "real trading volume", picture becomes even bleaker. According to BitcoinTradeVolume, the real trading volume for Bitcoin per day is $430 mln.

Data provider Messari points out that the only cryptocurrency with daily trading volumes higher than a billion dollars is the Tether (USDT) stablecoin. At the moment, the coin shows $1.5 billion per day. The nearest stablecoin in terms of volume is the USD Coin (USDC), which shows only $32 million per day. It is very likely that the stablecoins will only grow over time. 

Such a scenario will attract close attention of regulators. If Bitcoin was a "project in itself", and its value soaring to $20K was easily cut several times while still pushing tens of thousands of retail investors out of the market, then stablecoins are already on the  banks' playing field. It is quite possible that integration with the traditional banking sector is possible on the basis of stable cryptocurrencies, although initially, such an approach expects resistance.

There are several possible scenarios for volatile cryptocurrencies. One of them is that after the formation period is over, the coins value is fixed near a certain price level. Ethereum and other projects that go far beyond speculative interest could follow such a scenario. Bitcoin and other highly volatile digital currencies, on the other hand, would either have to accept the "tulip mania" status or carry out network upgrades that would allow for attracting non-speculative interest.

The crypto market is very small in size if compared to the traditional market. At the moment, it can have a particularly strong impact on the prospects of digital currencies, given the peg to the stock market and institutional investors' view of bitcoin as a risky asset. The crypto market is extremely limited in maneuverability, and any significant decisions by institutional investors will create a massive wave. Unfortunately, the probability of a "growth wave" in this case is quite low.

Author

Alexander Kuptsikevich

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

More from Alexander Kuptsikevich
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP slide further as risk-off sentiment deepens

Bitcoin faces extended pressure as institutional investors reduce their risk exposure. Ethereum’s upside capped at $3,000, weighed down by ETF outflows and bearish signals. XRP slides toward November’s support at $1.82 despite mild ETF inflows.

Ripple eyes record high breakout in 2026 as Ripple scales infrastructure

XRP has traded under pressure, but short-term support keeps hopes of a sustainable recovery in 2026 alive. The launch of XRP ETFs and regulatory clarity in the US pave the way for institutional adoption.

Bitcoin risks deeper correction as ETF outflows mount, derivative traders stay on the sidelines

Bitcoin (BTC) remains under pressure, trading below $87,000 on Wednesday, nearing a key support level. A decisive daily close below this zone could open the door to a deeper correction.

Monero builds momentum amid bullish bets and looming resistance

Monero (XMR) trades close to $430 at press time on Wednesday, after a 5% jump on the previous day. The privacy coin regains retail interest, evidenced by heightened Open Interest and long positions.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.