Stable coin dominance increases in June as crypto markets fall by 35 %

Stable coin dominance increases in June as crypto markets fall by 35 %

Bitcoin fell under $ 19,000 this morning after it lost up to 6 % last day, since the benchmark indices Nasdaq 100 and S&P 500 remain.

Bitcoin (BTC) tends at prices that were last seen two weeks ago when it broke up to $ 17,600, the lowest status since December 2020, when the leading digital asset was on the way to break his record high of 2018

worse, Bitcoin was one of the top 50 tokens with the worst performance this month, according to Blockworks. Today's decline also follows directly on the additional Bitcoin purchase of Microstrategy of $ 10 million, which indicates that CEO Michael Saylor bought the decline too early.

The price of Bitcoin has fallen by about 40 % since June 1st and ends up in the lower third of the top 50.

The worst performance of the top 50 cryptocurrencies-the decentralized financial token AAVE and BTC-Fork-Bitcoin-Cash-lost 51 % of their value this month. Meanwhile, the technology -heavy Nasdaq 100 fell by 8 %in June together with the wider S&P 500, plagued by macroeconomic factors such as inflation and persistent global supply chain problems.

The Bitcoin dominance that measures how much BTC is on the market for digital assets decreased in June by more than seven percentage points to 43.5 %. Ether dominance collapsed more than twice as strongly and is now around 15 %.

Overall, the cryptoma markets broke up by 35 % in the course of the month, which corresponds to a representative loss of value of $ 453 billion.

In fact, investors fled again from volatile assets into the stable coins with Binance, Tether, Dai and USD Coin dominance between 42.5 and 64.5 percentage points.

Together these four stable coins currently make up more than 15 % of the total cryptocurrency value, which practically corresponds to the Ether, compared to 10 % at the beginning of the month.

The Leo token of Bitfinex proves to be the most resistant-again

As for the winners in June, the native token Unus Sud Leo (Leo) of the Bitfinex cryptocurrency exchange continues to surpass the entire cryptom market. It is the only top 50 crypto asset that gained value in June after it has risen by almost 12 %. On average, leading cryptocurrencies (without stable coins and asset-backed tokens) lost 32 %.

block works reported almost exactly the same result in the month after the Terra ecosystem was collapsed; Leo was the only top 100 cryptocurrency in the green area, if only by half a percent.

Leo is by far a outlier, even under his cohort. Competitive stock markets issued by FTX (FTT), HUOBI (HT), Binance (BNB) and KUCOIN (KCS) are steeply in the minus, each by 18 %, 33 %and 46 %.

Bitfinex for the first time in 2019 in 2019 to compensate for losses of $ 850 million, which through Polish raids in his then payment processor Crypto Corp. were created. Those who bought Leo can get their investments in public markets as its price increases by selling the token in public markets.

similar to other exchanges with native tokens buys and burns Bitfinex Leo supplies when trading on the platform. Almost 7 % of the Leo supply have been burned so far.

The price increase in June increased the market capitalization of Leo by almost $ 600 million and made it 15th

A Bitfinex spokesman previously said to Blockworks: "Leo's performance should be seen as a measure of the trust of customers and trust in the platform."

They added that a correlation between the price of Leo and the possible recovery of Bitcoin, which was stolen by the stock exchange in 2016. In February, the US authorities confiscated BTC worth 3.5 billion US dollars, which once belonged to Bitfinex, and arrested alleged money launderers, the amateur youtube rapper Heather "Razzlekhan" Morgan and their partner Ilja Lichtenstein.

Bitfinex, a subsidiary of the Tether mother company IFINEX, has undertaken to spend at least 80 % of these funds for buying and burning Leo-if the crypto actually gets back into the hands of the company.

False -footed Coinflex aims to follow Leo's way

Katie Talati, research director at the Digital Asset Management company Arca, agreed that the recovery of Bitcoin, which was stolen by Bitfinex, was the main reason for the price increase of Leo this year, but found that there had been no new developments in history since February.

"In addition, Leo is far from illiquid than other centralized stock exchange tokens, which means that it is subject to different price movements and the price may be more stable than others in the industry," said Talati Blockworks in an email.

The resounding success of Leo-especially in the previous course of the year-could be a good sign for the smaller crypto exchange Coinflex. The company plans the issue of a recovery token to replace assets worth $ 47 million that have been lost after an alleged loan contract had gone wrong with the early crypto advocate Roger Ver.

token buyers would help keep Coinflex solvent and receive an annual return of 20 %in return.

Talati of Arca, however, is not entirely convinced of the idea: "I wonder who will buy the new edition because the Coinflex customer base is much smaller, mainly Market Maker, almost no retail."

It is also unclear whether the investors will receive their capital back, as this is "based on the fact that Coinflex will call up funds from her counterparty," she added. Talati said that the lazy credit in USDC or the native token flex flex from Coinflex can be repaid, which is a risk for the investor, since the token has very little liquidity.

"However, people are returning and 20 % are very competitive, so [we will] have to watch the sale to see what happens," said Talati.

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The article Stablecoin Dominance Surges in June as Crypto Markets Shed 35% is not a financial advice.