Contraction in Stablecoin Economy as $1.52 Billion Vanishes in September, Nearing a Two-Year Nadir

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Utilizing the most recent data available, the stablecoin sector witnessed a substantial outflow of $1.52 billion from September 1 to September 30, 2023. Among the top ten stablecoins, FRAX and BUSD experienced the most significant declines, with their total supply diminishing by 16.9% and 26.4% respectively, within that one-month period.

A Decline of $1.52 Billion in Stablecoin Capitalization Over One Month

The domain of stablecoins, primarily anchored to fiat currencies like the U.S. Dollar, continued its trend of contraction, settling just above a valuation of $123 billion as of the end of September 2023.

Historical data reveals that on the first day of September, the total market capitalization of the stablecoin sector was substantially higher, standing at $124.57 billion. This highlights a net loss of $1.52 billion in value over the course of the month.

Rankings of Top Eight Stablecoins as of September 30, 2023

Tether (USDT), the most capitalized stablecoin, saw its supply edge higher by 0.5%, closing the month with a market capitalization of $83.22 billion. This accounts for 67.65% of the entire stablecoin market, currently valued at $123 billion.

The second-largest stablecoin by market capitalization, USD Coin (USDC), observed a 4% decline in its supply over the previous month, settling at a market capitalization of $25.10 billion. Makerdao’s DAI also contracted, albeit by a more modest 2%, with its valuation standing at $3.81 billion.

In contrast, Trueusd (TUSD) exhibited an 18.6% increase in its supply over the past month, attaining a market capitalization of $3.44 billion. Among the top five stablecoins, TUSD emerged as the one experiencing the most significant growth.

Conversely, BUSD experienced a substantial reduction in its supply, shrinking by 26.4% and leaving it barely above the $2 billion mark with a valuation of $2.25 billion.

Tron’s USDD also experienced a marginal 0.6% increase, ending the month with a market capitalization just under the $1 billion threshold, at $726.87 million. Simultaneously, Frax Dollar’s (FRAX) supply experienced a notable decrease of 16.9%, plummeting to a market capitalization of $669.65 million.

Pax Dollar (USDP) was not immune to the contraction, shedding 3.8% of its supply. As the stablecoin sector hovers at $123 billion in total valuation, it finds itself at a level not encountered since September 2021, effectively reverting to a point two years prior.

We invite your expert commentary and analysis on the notable contraction of $1.52 billion in the stablecoin market during September. Please share your insights and viewpoints on this topic in the comments section below.

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More about Stablecoin contraction

• Stablecoin Market Analysis
• FRAX and BUSD Performance
• Tether (USDT) Information
• Trueusd (TUSD) Growth
• Stablecoin Market Capitalization
• Cryptocurrency Trends
• Financial Analysis Resources