Kofi Mensah August Chronicles Another Month of Decline as 9 of 10 Leading Stablecoins Experience Supply Contraction
During the preceding 30-day period, a noteworthy trend emerged within the realm of stablecoins as nine out of the top ten by market capitalization underwent declines in value. Most notably, BUSD, among these stablecoins, experienced a substantial dip, plummeting by a significant 16.6%. As we conclude the month of August, the collective valuation of these stablecoins hovers just beneath the pivotal $125 billion threshold, persisting in the trajectory of consecutive monthly decreases observed throughout this year.
Marked Decreases in Supply for 9 of the Principal Dollar-Pegged Leaders; FDUSD Supply Surges by 40%
Presently, the stablecoin market stands at an aggregate value of $124.54 billion. Consistent with patterns observed in prior months, the month of August bore witness to a contraction in the circulating supply across several stablecoin projects. Notably, Tether (USDT), the dominant presence in the realm of stablecoins, boasts a valuation of approximately $82.88 billion.
Nevertheless, USDT encountered a decline of 1.1% in its circulating supply over the past 30 days. Similarly, Circle’s USD Coin (USDC) experienced a contraction of 1.4% in the same period, while Makerdao’s DAI faced a more substantial contraction of 6.4% in its monthly supply. USDC’s market capitalization is currently around $26.13 billion, with DAI slightly trailing at $3.89 billion.
Among these fluctuations, while DAI’s supply remains below the 4 billion mark, BUSD appears to be perilously close to descending below the $3 billion threshold. Over the course of the last month, BUSD underwent a significant reduction in supply, registering a notable decline of 16.6%. TUSD, on the other hand, reported a more modest 3.8% decrease in circulation. Notably, FRAX experienced the slightest contraction among the top ten, with a marginal reduction of merely 0.6%.
In the same timeframe, Tron’s USDD and Pax Dollar (USDP) reported monthly reductions of 2.5% and 8.3%, respectively. However, a newcomer to the scene, first digital USD (FDUSD), defied the overarching trend by expanding its supply from 232 million at the initiation of August to a robust 327 million FDUSD by the conclusion of the month – marking an impressive growth of over 40%.
During the past month, the Gemini Dollar (GUSD) observed a substantial contraction in supply, experiencing a decline of 14%, while Liquity USD (LUSD) faced a more moderate dip of 2.5%. Despite encountering yet another month characterized by consistent declines, some more substantial than others, USD-pegged stablecoins maintain their dominance in terms of trading volume within the cryptocurrency landscape.
To provide context, out of the total crypto trading volume amounting to $36.92 billion within a 24-hour span, an impressive $28.65 billion is attributed to stablecoins. Notably, Tether (USDT) singularly contributes a substantial $18.83 billion to this trading volume.
Feel free to share your insights and perspectives on this month’s developments in the stablecoin arena. Your thoughts and opinions on this matter are encouraged and can be shared in the comments section below.
Table of Contents
Frequently Asked Questions (FAQs) about stablecoin market trends
What were the trends observed in the stablecoin market during August?
During August, the stablecoin market witnessed a notable trend of decline, as nine out of the top ten stablecoins by market capitalization experienced decreases in their values. This downward movement was particularly pronounced in BUSD, which saw a substantial drop of 16.6% in its value. These developments marked a continuation of the trend of consecutive monthly decreases that have been observed throughout the year.
What is the current status of the stablecoin market in terms of value?
Presently, the stablecoin market holds a collective value of approximately $124.54 billion. This value takes into account the combined valuations of various stablecoins within the market.
How did some of the leading stablecoins perform in terms of supply?
Among the leading stablecoins, Tether (USDT), which is a prominent player in the stablecoin landscape, experienced a reduction of 1.1% in its circulating supply over the past 30 days. Similarly, Circle’s USD Coin (USDC) saw a decrease of 1.4% in its supply, while Makerdao’s DAI faced a more substantial contraction of 6.4% in its monthly supply.
What were the changes in market capitalization for these stablecoins?
The market capitalization of USDC currently stands at around $26.13 billion, with DAI trailing slightly behind at $3.89 billion. These figures reflect the relative valuation of these stablecoins within the market.
How did other stablecoins fare in terms of supply adjustments?
BUSD, which experienced the most significant decline in value during this period, reduced its supply by a substantial 16.6%. In contrast, TUSD reported a more modest dip of 3.8% in its circulation. Notably, the newcomer, first digital USD (FDUSD), defied the overall trend by expanding its supply by over 40% during the month.
What were the changes in supply for Tron’s stablecoins and others?
Tron’s USDD and Pax Dollar (USDP) recorded monthly reductions of 2.5% and 8.3%, respectively. Additionally, other stablecoins such as Gemini Dollar (GUSD) faced a contraction of 14% in supply, while Liquity USD (LUSD) saw a more moderate decrease of 2.5%.
How do stablecoins contribute to the trading volume in the cryptocurrency landscape?
Stablecoins, particularly USD-pegged ones, continue to dominate the trading volume within the cryptocurrency market. Out of the total trading volume of $36.92 billion observed within a 24-hour period, a substantial $28.65 billion is attributed to stablecoins. Notably, Tether (USDT) contributes a significant portion of this volume, accounting for $18.83 billion on its own.
What is the significance of these stablecoin market trends?
The stablecoin market trends observed during August underline the inherent volatility and fluctuations within the cryptocurrency landscape. These trends provide insights into how various stablecoins are adjusting their supply and valuation in response to market dynamics.
More about stablecoin market trends
- Tether (USDT)
- USD Coin (USDC)
- MakerDAO
- First Digital USD (FDUSD)
- Gemini Dollar (GUSD)
- Liquity USD (LUSD)
- Cryptocurrency Trading Volume
- Stablecoin Market Analysis
- Crypto Market Trends
- Cryptocurrency News
10 comments
usdt still king, holdin’ the fort with $18 bil trading vol, keepin’ us afloat folks
trends showin’ stablecoins ain’t so stable after all, what’s next?
stablecoins took a hit in august, 9 outta 10 went down, thats not too good, huh
stablecoins dippin’ while politics heatin’, strange times we live in
August’s been stormy for stablecoins, hang tight folks, crypto’s a wild ride
new kid FDUSD buckin’ the trend, growin’ like a wildfire, interestin’
USD Coin droppin’, wonder what’s causin’ the shrinkage in supply
whoa, stablecoins in turmoil? wonder how car market gonna roll with this
16.6% drop in BUSD? that’s quite a nosedive, wonder what’s next
usd-pegged coins seem shaky, they drop their supplies like it’s hot