Simon Ng According to recent statistics, the stablecoin economy witnessed a substantial setback as its market capitalization plummeted below the $129 billion threshold, settling at the current value of $128.21 billion on July 2, 2023. Distressingly, the withdrawal of stablecoins from the market amounted to a staggering $2 billion since May 28.
Diminishing Market Capitalization of Stablecoin Economy Raises Concerns
While the overall cryptocurrency market experienced growth over the past 30 days, the stablecoin economy suffered a severe blow, losing over $2 billion in June alone. Comparative data reveals that on May 28, the stablecoin economy’s net worth stood at $130.28 billion, a stark contrast to its present value. This indicates that approximately $2.07 billion worth of stablecoins were redeemed within the last month.
As of July 2, current statistics demonstrate that three out of the top five stablecoins based on market valuation encountered substantial redemptions. While Tether (USDT) observed a meager 0.1% increase during the past 30 days, trueusd (TUSD) witnessed an impressive surge of 49.4%, elevating its market cap from $2 billion to the current $3.05 billion.
Leading Stablecoins Experience Redemptions, Supply Shrinks
Among the top five stablecoins, USDC, DAI, and BUSD faced notable redemptions. USDC had 5.5% of its supply redeemed, DAI suffered a loss of 5.7%, and BUSD encountered a significant reduction of 20.2% in its supply over the past month. Consequently, the supply of USDC dwindled to 27.32 billion, DAI’s supply decreased to 4.34 billion, and BUSD’s supply contracted to 4.13 billion.
The stablecoin economy has contracted significantly in comparison to the previous year, reaching its lowest value in approximately 21 months. Furthermore, trade volumes involving stablecoins have also experienced a decline. Nevertheless, dollar-pegged tokens continue to dominate the trading landscape within the cryptocurrency market. Out of the total $26.80 billion in trade volume across the crypto economy, stablecoin assets accounted for a substantial $15.86 billion.
The contraction of the stablecoin economy and the surge in redemptions could potentially have far-reaching implications for the broader cryptocurrency market. We invite you to share your thoughts and opinions on this matter in the comments section below.
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Frequently Asked Questions (FAQs) about stablecoin economy
What is the current status of the stablecoin economy?
The market capitalization of the stablecoin economy on July 2, 2023, has fallen below the $129 billion mark to the current $128.21 billion.
How much value did the stablecoin economy lose in June?
The stablecoin economy experienced a loss of over $2 billion in June, with approximately $2.07 billion worth of stablecoins being redeemed since May 28.
Which stablecoins witnessed redemptions in the past 30 days?
Among the top five stablecoins by market valuation, USDC, DAI, and BUSD experienced redemptions. USDC had 5.5% of its supply redeemed, DAI recorded a loss of 5.7%, and BUSD saw a reduction of 20.2% in its supply over the past month.
How has the stablecoin market capitalization changed compared to last year?
The stablecoin economy has significantly contracted since last year, reaching its lowest value in approximately 21 months. This indicates a notable decline in the market capitalization of stablecoins.
What is the trade volume involving stablecoin assets?
Out of the total $26.80 billion in trade volume across the entire crypto economy, a substantial $15.86 billion in trades involved stablecoin assets. This demonstrates that stablecoins continue to play a significant role in the overall cryptocurrency market.
More about stablecoin economy
- Stablecoin Market Capitalization
- Redemptions Impact on Stablecoins
- Top Stablecoins by Market Valuation
- Decline in Stablecoin Economy
- Trade Volume in Cryptocurrency Market
2 comments
redemptions hitting top stablecoins hard! USDC, DAI, and BUSD taking a hit, supply shrinking. gonna keep an eye on this, could impact the broader crypto market! #cryptonews
stablecoin economy going down, oh no! lost 2bil in June, what a bummer! hope they bounce back soon #cryptostruggles