USDT from Third to Sixth
Tether’s USDT has seen its third-place market capitalization ranking taken from it in quick succession by Binance Coin (BNB), Polkadot (DOT) and Cardano (ADA).
Tether now occupies sixth place, with a market capitalization of just under $35 billion. The successful challengers are currently valued at $46.6 billion, $37.5 billion, and $35.2 billion respectively.
BNB in particular had an impressive rally last week. It gained over 127% since Feb 15. and broke above the $300 mark. DOT and ADA also saw new all-time highs this week, with the former reaching $42.25 and the latter $1.18 on Feb 20.
BNB’s stellar performance could be the result of both the ongoing expansion of the Binance Universe, as well as the competition Binance Smart Chain (BSC) gives Ethereum-based decentralized exchanges (DEXs).
A Bullish Portfolio
Indeed, the de-ranking of the cryptocurrency market’s most used stablecoin might indicate a trader/investor shift towards performance led growth instead of assured stability.
Notably, Tether spent a considerable amount of time this week below $1.00. This usually happens when the freely-traded stablecoin is ditched en-masse for high-potential cryptocurrencies in a bull market.
Moreover, other indicators seemingly support this great portfolio rebalance towards crypto-assets.
On Feb. 20, data from cryptocurrency market intelligence company Glassnode revealed funding rates for Bitcoin (BTC) perpetual swaps remained close to zero, despite the top cryptocurrency’s record heights.
This indicates that cryptocurrency traders and investors are buying BTC on the spot market to hold, rather than entering leveraged positions to either long or short the top-cryptocurrency.
Will the Top Two Continue to Lead?
All this data suggest that the market expects new highs. BTC already breached the $1 trillion market capitalization level this week, with the total for the entire market closing in on $2 trillion.
Furthermore, Ethereum (ETH) flew over $2,000 this week for the first time in its history.
There is no doubt that these two cryptocurrency giants will continue to lead as the market heads towards the “moon”. However, the lead pack next week might also include BNB, DOT and ADA.
For now, USDT is out, tokens are in.