The stablecoin economy continues to exhaust itself as more than $3 billion has been purged from the stablecoin market ecosystem in the past 44 days. While statistics show that Tether’s market valuation has increased by 2% in the last 30 days, the USD coin’s market cap has fallen by 2.9%, the BUSD valuation has lost 7.2% over the last month and the market cap of the Gemini -Dollars fell 1.5%.
$3 billion in dollar-pegged tokens wiped out in 44 days as stablecoin swaps account for nearly 80% of global crypto trading volume
The combined value of the top stablecoins by market cap has lost around $3 billion in the last 44 days, or since December 15, 2022. At that point, the stablecoin economy was worth $141.07 billion. On that day, stablecoin swaps accounted for $44.55 billion of the $53.91 billion in global trading volume.
The total market cap of the entire stablecoin economy on January 28, 2023.
After losing more than $3 billion, the stablecoin economy is valued at $138.07 billion, and stablecoin trading equals $46.33 billion of the $58.76 billion global trade on January 28, 2023. Out of the ten largest stablecoin assets, three market caps have lost value during the last 30 days.
Statistics show that the USD coin (USDC) has lost 2.9% over the past month and BUSD has lost the most, down 7.2% in 30 days. Binance-linked and Paxos-managed dollar-pegged token BUSD has seen a significant number of redemptions over the past few months. At the time of writing, the total market cap of BUSD in US dollars is $15.8 billion.
Top five stablecoins by market cap on Jan 28, 2023. USDC lost 2.9% and BUSD lost 7.2% in the last 30 days in terms of tokens in circulation.
USDC’s market cap is around $43 billion as of Saturday. On December 15, 2022, the valuation was around $45 billion. Similarly, the Gemini dollar (GUSD) market cap was about $591 million 44 days ago and about $571 million today. While there were some stablecoin projects where the market cap declined, Tether, DAI, Trueusd (TUSD) and Pax Dollar (USDP) all saw gains.
Tether (USDT) has seen coins in circulation up 2% over the past 30 days. Makerdao’s DAI rose 1% and trueusd (TUSD) climbed 25.3% higher. The Pax dollar (USDP) is up 5.1% and Tron’s USDD has seen a small gain of around 0.6% over the past 30 days. Liquidity usd (LUSD) is up 24.4% over the past month, and Abracadabra’s stablecoin MIM is up 3.9%.
Although tens of billions of dollars in stablecoin assets have been drained since last year, they still constitute a dominant force in the crypto economy. As of May 2022, three stablecoin assets are in the top ten market cap positions: USDT, USDC, and BUSD. Both USDT and USDC have been in the top ten positions for much longer.
Additionally, the total stablecoin economy worth $138 billion accounts for 12.71% of the total crypto-economy value of $1 trillion. In terms of trading volume alone, as of Saturday, January 28, stablecoins accounted for 78.85% of all crypto asset trades globally across both centralized and decentralized exchange (Dex) platforms. That means more than seven out of ten crypto asset trades today have been swapped with a stablecoin.
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$3 Billion, 30 Days, 44 Days, Abracadabra, Assets, Binance, BUSD, BUSD Decline, Centralized, Circulation, Crypto, Cryptoeconomics, Cryptocurrency, DAI, Decentralized Exchange, Decline, Dollar-pegged, Dominance, Economy, Gemini Dollar, Global, Liquidity, Loss, LUSD, Makerdao, Market, Market Cap, Market Positions, MIM, Pax Dollar, Paxos, Repayments, Stablecoin, Stablecoin Economy, Tether, Tether (USDT), Top Ten, Trading, Tron, Trueusd, USD coin , USD coin (USDC), USDD, value, volume
What does the recent decline in the stablecoin economy mean for the overall cryptocurrency market? Share your thoughts in the comments.
Jamie Redman
Jamie Redman is the news director at Bitcoin.com News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about today’s emerging disruptive protocols.
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