Cryptoinvestors are switching from BTC to USDT
Cryptocurrency investors are moving away from Bitcoin (BTC) to the leading stablecoin Tether (USDT) as cryptocurrency prices fall, according to the latest CryptoCompare exchange review.
The report details that Bitcoin and Etherium (ETH) closed June at $19,908 and $1,070 after falling 37.4% and 44.9%, respectively, recording the biggest monthly drop since February 2014 for BTC and March 2018 for ETH.
These drops led to an increase in spot Bitcoin trading in Stablecoin last month as “investors remained cautious due to fears of a liquidity crisis at strike cryptocurrencies.” According to the report, BTC trading in USDT rose 24.3% last month, allowing the asset to remain the dominant steiblocoin and fiat currency pair in the market with a 67.2% share.
CryptoCompare specifies that investors continued to prefer the safety of stabelcoins after the downtrend in price action, with spot BTC trading in USDC also up 41.8% to 306,000 BTC. Bitcoin trading in U.S. dollars was up 0.37% and in Japanese yen (JPY) was up 17.8%.
Notably, last month the USDC regained its position as the second-largest Stablecoin market after TrueUSD’s trading volume fell 67.2%.
The CryptoCompare report also details that derivatives trading volumes in June fell 7.01% to $2.75 trillion, while total spot volumes fell 27.5% to $1.41 trillion. That means the derivatives market now accounts for 66.1% of total cryptocurrency volume, down from 60.3% last month.
Binance retained its position as the largest top-tier cryptocurrency exchange in terms of trading volume, with trading volume of $398 billion last month. Binance was followed by FTX with $71.6 billion in trading volume and Coinbase with $59.1 billion in trading volume. Binance lost 24.2% of its volume last month, while FTX lost 19.9% and Coinbase lost 25.8%.
Among the top 15 exchanges by volume, these three accounted for about 66.1% of total volume, up from 67.1% in May.
As for institutional trading volume on the CME, 253,759 BTC futures contracts were traded last month, up 1.24% from May. According to the report, this was the highest number of Bitcoin futures contracts traded on the CME since February 2021.
Meanwhile, 177,117 ETH futures contracts were sold, up 30.1% from May. This is the highest number of such contracts sold since their launch on the CME.