Stablecoin Dominance At 9-Month Low After SEC Targets Binance Dollar

Stablecoin dominance is one of the only crypto charts to steadily fall over the past 60 days, per Blockworks Research

article-image, modified by Blockworks


Stablecoin dominance has been declining all year, but recent threats by the SEC might have pushed it lower.

The metric, which tracks how much of crypto’s total market value is stablecoins, has dropped 12.37%, its lowest point since May 2022, per Blockworks Research.

Decreasing stablecoin dominance typically suggests a shift in sentiment toward risk-on appetite. Stablecoin dominance was only 4.9% when bitcoin hit all-time highs in Nov. 2021.

That figure rose sharply on the back of the FTX debacle one year later.

Stablecoin dominance peaked in June and November last year (source)

Stablecoin dominance is now one of the only crypto charts with a continued fall over the last 60 days, according to Blockworks Research analyst Matt Fiebach.

“It’s unclear if market capital is looking for risk-on positions in crypto or if it is fleeing what it sees as an area of potential regulatory scrutiny,” Fiebach said.

While sentiment remains uncertain, the threat of regulatory action against stablecoins could be driving capital back into majors BTC and ETH.

Meanwhile, Binance-branded stablecoin BUSD has lost significant market share since it confirmed receipt of an SEC Wells notice, which signifies intent to sue. 

Loading Tweet..
GSR president Rich Rosemblum weighed in on positive bitcoin price action in light of BUSD’s troubles.

The SEC reckons BUSD is an unregistered security. Paxos, the issuer of the token, stopped issuances earlier this month

BUSD has lost significant dominance in the stablecoin market following that development, down from roughly 16% in December to under 10% today.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million