Why are cryptocurrencies falling today? A stablecoin shift appears on the horizon

The global cryptocurrency market is seeing a correction with some investors shifting focus to stablecoins.

According to data provided by CoinGecko, the total capitalization of the cryptocurrency market fell by 04% in the last 24 hours, from $2.38 trillion to $2.34. Global daily trading volume, however, increased by 27%, surpassing the $52 billion mark.

Global Cryptocurrency Market Capitalization – May 13 | Source: CoinGecko

Data shows that stablecoins are dominating total trading volume, with USDT in first place, with over $34.5 billion in daily trading volume. According to CoinGecko, the largest stablecoin has a total market capitalization of $110 billion as of this writing.

Plus, 24-hour service trade activity involving USDC also increased by 22%, reaching $3.56 billion.

FDUSD also recorded a 46% increase in daily trading volume, surpassing the $4.5 billion mark. On the other hand, DAI’s 24-hour trading activity plunged 17.2% to $652 million.

According to data from CryptoQuant, the market bearish momentum comes as the Coinbase Premium trend says “wait and see.”

According to the analysis, Coinbase Premium’s momentum is currently in the positive zone, with traders patiently waiting for the pattern to repeat itself for the fifth time in the last two years. The analyst wrote:

“If the historical pattern repeats itself, we may have a better chance of success if we wait a little longer and invest in the rebound after the trend turns negative.”

At this point, 88% of the top 200 cryptocurrencies are in the red zone, according to CoinGecko data. Despite the crisis, Bitcoin (Bitcoin) has gained 1.4% in the past 24 hours and is trading at $61,660 at the time of reporting.

Ethereum (ET) the price has increased by 0.6% in the last day and is currently changing hands at $2,925.

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