Glassnode & CME Group Report: USDT’s Dominance & the Digital Asset Landscape

A detailed report by Glassnode and CME Group highlights the dominance of Tether （USDT） in the stablecoin market and the significant growth of the digital asset space.

Points

• Tether （USDT） holds 74% dominance in the stablecoin market.
• The digital asset space has grown significantly, with Bitcoin leading.
• Bitcoin’s market cap has increased by $1.13 trillion since November 2022.
• The aggregate market cap of digital assets is around $2.56 trillion.
• Stablecoins represent a significant portion of the digital asset market.

The latest report by Glassnode and CME Group provides a comprehensive overview of the digital asset landscape, emphasizing the dominance of Tether （USDT） in the stablecoin market and the overall growth of digital assets.

Significant Growth in Digital Assets

The digital asset space has seen substantial growth in recent years, driven by increasing institutional interest and the recognition of cryptocurrencies as a macro asset class. Bitcoin has historically led the market, and this trend has continued through 2023 and 2024.

Bitcoin’s Market Dominance

Bitcoin’s market cap has surged by over $1.13 trillion （+370%） since its cycle low in November 2022. Ethereum, the second-largest asset, saw its valuation rise by $354 billion （+267%） over the same period, reflecting the broader altcoin market’s performance.

Aggregate Market Cap

The aggregate market cap of digital assets now stands at approximately $2.56 trillion. Bitcoin commands over half of this value, with a market cap of $1.33 trillion. Ethereum follows with a market cap of $451 billion, while the broader altcoin market represents $611 billion in total value. Stablecoins have become a crucial component of the digital asset market, with a total supply of $145 billion over the past four years.

Tether’s Dominance

Tether （USDT） remains the dominant stablecoin, holding a 74% market share. USD Coin （USDC） follows with a 22% share. USD-denominated stablecoins comprise over 99% of the total stablecoin market, highlighting their significant adoption compared to other fiat currencies.

Bitcoin’s Enduring Leadership

Bitcoin has maintained its position as the largest digital asset for the last 16 years, commanding over 52.7% of the total industry value. Analysts often use Bitcoin dominance to assess market cycles, with its dominance typically growing during bear markets and early bull markets.

Ethereum’s Role in the Altcoin Sector

Ethereum continues to dominate the altcoin sector, representing 41.7% of this market. Although its dominance has slightly declined since mid-2023, Ethereum remains a significant player in the digital asset landscape.

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Internal Market Cycles of Digital Assets

Digital assets exhibit internal market cycles, with capital rotating through various market sectors over time. On-chain data helps model these rotations by measuring the 30-day change in capital flows into Bitcoin, Ethereum, and total stablecoin supplies. Historically, capital tends to migrate towards Bitcoin during market downturns and immediate recoveries. As investor confidence builds, capital flows to Ethereum and then further out on the risk curve during bull markets.

Stablecoins as Preferred Quote Currency

Stablecoins have emerged as a preferred quote currency on both centralized and decentralized exchanges. Growth in total stablecoin capital can indicate demand further out on the risk curve. The chart below illustrates how capital waves have moved between various market sectors over the last six years.

Conclusion

The report by Glassnode and CME Group underscores the substantial growth and evolving dynamics within the digital asset space. Tether’s dominance in the stablecoin market, along with Bitcoin’s enduring leadership, highlights the critical role these assets play in the broader cryptocurrency ecosystem. As digital assets continue to grow, understanding the internal market cycles and the significance of stablecoins will be crucial for investors navigating this rapidly changing landscape.

解説

• Market Dynamics: Understanding the dominance of Tether and the growth of Bitcoin and Ethereum helps investors grasp the broader market trends.
• Internal Cycles: Recognizing capital flows within the digital asset market can inform investment strategies during different market phases.
• Stablecoin Significance: Stablecoins’ role as a preferred quote currency on exchanges emphasizes their importance in trading and liquidity provision.