As cryptocurrencies continue to evolve, stablecoins have emerged as a popular asset class, providing stability in the highly volatile crypto market. Identifying stablecoins and analyzing their performance can be essential for traders seeking to make informed decisions.
TradingView’s Crypto Coins Screener offers several tools and indicators specifically designed to track and monitor stablecoins like USDT, USDC, BUSD, and others. This article outlines how to use TradingView’s Crypto Coins Screener to identify stablecoins effectively.
Understanding Stablecoins
Before diving into the tools available on TradingView, it’s important to understand what stablecoins are and why they are so widely used in cryptocurrency trading. Stablecoins are a type of cryptocurrency designed to have a stable value, often pegged to a fiat currency like the US dollar.
The most commonly used stablecoins are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and Dai (DAI). These coins offer traders a safe harbour from market volatility while allowing them to remain in the crypto ecosystem without converting assets to fiat currencies.
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TradingView’s Crypto Coins Screener: A Powerful Tool
The Crypto Coins Screener on TradingView is a versatile tool designed to help traders analyze various cryptocurrencies, including stablecoins.
By integrating data such as market cap, supply ratios, and liquidity measures, this screener allows users to identify trends and opportunities in the stablecoin market. Here are some key tools within TradingView that help with stablecoin analysis:
1. Stablecoin Dominance Indicator
The Stablecoin Dominance tool on TradingView is one of the most useful features for tracking the overall market share of major stablecoins like USDT, USDC, BUSD, DAI, and TUSD. This tool gives traders a snapshot of how much stablecoins dominate the market at any given time.
- How It Works: The dominance of stablecoins is measured as the percentage of total crypto market capitalisation held in stablecoins.
- Why It’s Useful: A high dominance figure indicates that more capital is flowing into stablecoins, which could be a sign of risk aversion in the market. Conversely, a low dominance level may suggest that traders are moving capital out of stablecoins and into more volatile assets like Bitcoin or Ethereum.
2. 3GBH – MoneyMeter (Stablecoins RSI)
The 3GBH MoneyMeter is an indicator that tracks the market caps of three of the largest stablecoins—USDT, USDC, and DAI—on a relative strength index (RSI) scale. This tool shows how much capital is flowing into or out of these stablecoins over time.
- How It Works: The indicator is color-coded, where green signifies capital flowing into stablecoins and red indicates outflows. This gives traders an easy-to-read signal of market sentiment.
- Why It’s Useful: The RSI-based tracking allows traders to determine whether stablecoins are being used to enter or exit crypto positions, offering insights into broader market trends.
3. Blockunity Stablecoin Liquidity (BSL)
The Blockunity Stablecoin Liquidity (BSL) tool is another useful resource for tracking stablecoin activity. It focuses on liquidity, which is a critical factor in any market, especially in cryptocurrency, where liquidity can vary widely between different coins and tokens.
- How It Works: BSL monitors the market capitalization of major stablecoins, helping traders determine how much liquidity is available in the market. It acts as an early warning system for liquidity shortages or surpluses in the stablecoin market.
- Why It’s Useful: Understanding liquidity is vital for timing trades and managing risks. If liquidity is drying up, it could signal that a large move is coming in the crypto market.
Also Read: Discover Emerging Crypto Currencies Using Crypto Screener
4. USDT+USDC+BUSD Market Cap
The USDT+USDC+BUSD Market Cap is a TradingView Pine Script indicator that shows the combined market cap of three of the largest stablecoins—USDT, USDC, and BUSD—on a daily basis. This indicator gives traders a more comprehensive look at the role of these stablecoins in the broader cryptocurrency market.
- How It Works: The indicator adds the individual market caps of USDT, USDC, and BUSD to present a single chart showing the total capitalization.
- Why It’s Useful: Monitoring the combined market cap of these stablecoins provides insights into the overall health and liquidity of the crypto market. A rising market cap suggests increased demand for stablecoins, potentially signaling a bearish market sentiment.
5. Stablecoin Supply Ratio (SSR)
The Stablecoin Supply Ratio (SSR) measures the supply of stablecoins relative to the supply of Bitcoin. It is an important metric for traders who want to gauge the buying power of stablecoins in relation to Bitcoin.
- How It Works: A low SSR means that the current supply of stablecoins has more purchasing power to buy Bitcoin. On the other hand, a high SSR indicates reduced buying power.
- Why It’s Useful: SSR helps traders identify potential market moves. If the SSR is low, it suggests that traders may soon use their stablecoins to buy Bitcoin, which could lead to an upward price movement.
6. Opening the Crypto Coins Screener
To access these tools, open the Crypto Coins Screener on TradingView. From there, you can apply filters and indicators to identify stablecoins and monitor their performance in real time.
- Steps to Access: Navigate to TradingView’s main menu, select “Screeners,” and choose “Crypto Coins Screener.” Once in the screener, use filters like “Market Cap” and “Stablecoin Dominance” to narrow down your search.
- Why It’s Useful: The Crypto Coins Screener allows for quick and easy filtering of stablecoins based on market data, providing traders with actionable insights.
Also Read: What Metrics Should You Focus on in TradingView’s Crypto Coins Screener
Conclusion
TradingView’s Crypto Coins Screener offers a wealth of tools for traders looking to analyze stablecoins. From tracking liquidity with the Blockunity Stablecoin Liquidity tool to monitoring stablecoin dominance and supply ratios, these features provide critical insights for managing crypto portfolios. Whether you’re looking to gauge market sentiment or time your trades, TradingView’s comprehensive suite of tools makes identifying and analyzing stablecoins easier than ever.
By using these tools effectively, you can stay ahead in the fast-moving world of cryptocurrency trading and make more informed decisions regarding stablecoins like USDT, USDC, and BUSD.
