Tuesday, November 28, 2023

Recent data reveals a high level of redemptions in the stablecoin market within a 30-day period from May 15 to June 15, 2023, with over 2.4 billion stablecoins being reclaimed. This time frame saw a supply reduction of 4% to 19% in three major stablecoins, in contrast to their supply levels in the prior month.

A Downward Trend in the Stablecoin Economy

The stablecoin industry has been witnessing a persistent drop in the supply of numerous tokens, with significant redemptions for USDC, BUSD, and DAI recorded in the past month. USDC, the second largest stablecoin, saw a 5.7% shrinkage in its supply, while about 19% of BUSD tokens were reclaimed.

Makerdao’s DAI stablecoin also experienced a 4% reduction since May 15, 2023. However, amid these shifts, two stablecoins demonstrated supply growth over the previous 30 days — tether (USDT) and true usd (TUSD).

The six leading stablecoin assets by market capitalization as of June 15, 2023.

USDT registered a 0.9% increase in supply over the 30 days, achieving a record-breaking market valuation of $83.614 billion. TUSD followed suit with a modest 0.3% supply increase, driving its market capitalization to $2.04 billion as of June 15.

Conversely, pax dollar (USDP) posted a 4.8% drop in the past month, while FRAX made a marginal gain of 0.2% within the same period. Tron’s USDD and Gemini’s GUSD registered supply declines of 1% and 1.9%, respectively. Moreover, liquity usd (LUSD) faced a nearly 1.9% decrease over the past 30 days.

Seven of the top ten stablecoins, with redemptions between 1% and 19%, have seen impacts on their market valuations. Since May 15, 2023, roughly 2.471 billion stablecoins have been redeemed, contributing to the overall downward trend in the stablecoin market.

The predominantly USD-linked crypto assets, which form the stablecoin market, have hit a 20-month low. If the observed trend in June continues, the market could potentially face a 21-month downturn.

Despite BUSD’s substantial decline of 19%, the losses incurred by other stablecoin projects have led to the market’s current value of $128.92 billion. Currently, the stablecoin market accounts for 12.12% of the total value of the crypto economy, which stands at $1.06 trillion.

We’d like to hear your views about the performance of the stablecoin market in the past month. Feel free to share your thoughts and perspectives on this topic in the comments section below.

Frequently Asked Questions (FAQs) about Stablecoin Market Decline

What is the general trend in the stablecoin market from May 15 to June 15, 2023?

The stablecoin market experienced a significant decline during this period, with over 2.4 billion stablecoins being redeemed and many major stablecoins witnessing a decrease in their supplies.

Which stablecoins experienced a reduction in their supplies?

USDC, BUSD, DAI, pax dollar (USDP), Tron’s USDD, Gemini’s GUSD, and liquity usd (LUSD) all experienced reductions in their supplies.

Were there any stablecoins that saw an increase in their supplies during this period?

Yes, two stablecoins demonstrated an increase in their supplies over this period – tether (USDT) and true usd (TUSD).

What is the current value of the stablecoin market?

As of June 15, 2023, the value of the stablecoin market stands at $128.92 billion.

What percentage of the total crypto economy’s value is represented by the stablecoin economy?

As of the current statistics, the stablecoin economy represents 12.12% of the total value of the crypto economy.

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BitByBit June 16, 2023 - 4:15 am

this is why diversification is key in crypto! Not all stablecoins are having a hard time, just look at TUSD!

DeFi_Dan June 16, 2023 - 9:11 am

Who else thinks that this dip might be a good time to jump in? The market’s gotta rebound eventually, right?

HODLer4Life June 16, 2023 - 3:13 pm

When market down, I just HODL and DCA my way through it. These are trying times but remember – it’s always darkest before the dawn. Stay strong!

BlockchainBabe June 16, 2023 - 10:59 pm

i’m actually surprised to see tether growing amidst all this. Thought for sure it would be hit as well, just shows you can never predict the crypto market.


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