Gemini’s GUSD Stablecoin Dollar Token Is Dropping In Value Quite Rapidly… What’s Going On?
- Gemini’s market capitalization has dipped quite heavily over the past 7 months (>92% to be exact).
- Tyler and Cameron Winklevoss have applied for a license that will potentially allow Gemini to trade securities as well as other novel financial offerings.
According to data available on Coinmarketcap (CMC), the demand of GUSD (Gemini Dollar) has been dropping drastically over the course of the past 7 months or so. Not only that, it is also worth highlighting that while other fiat pegged-altcoins are doing quite well (from a monetary standpoint), GUSD is one of the few stablecoins whose value is in a sort of a freefall.
To elaborate further on the matter, we can see that the total market capitalization of GUSD has slipped from its all-time high value of $103.106 million to a meager $7.981 million over the course of the past 7 months — thereby indicating a total value drop of more than 92.20%. For additional perspective, we can see that over the same time period, Bitcoin’s price has soared by over 230% (from $3,100 to $10,300).
Lastly, it bears mentioning that when compared to GUSD, other stablecoin offerings such as Paxos, Circle’s USDC have all been performing relatively well.
Other Key Points Worth Highlighting
Data obtained from CoinGecko shows that Gemini — the crypto trading platform owned and operated by the Winklevoss Twins — is currently witnessing around $60.275 million worth of daily tx volume. This number when compared with associated figures from Coinbase Pro are quite low — especially when considering that the premier exchange facilitates daily trades of more than $602 million.
According to some experts, Gemini’s native crypto offering could be sliding because the demand for dollar-pegged entities in general seems to be reducing across the globe. Similarly, many people have also argued that GUSD’s market visibility when compared to USDT, USDC is quite poor.