Simon Ng Over the past month, the leading stablecoins have experienced a continuous decline in demand, resulting in a shrinking dollar-pegged crypto economy that currently stands at $127.32 billion as of July 12. One notable example is BUSD, whose supply has dipped below 4 billion tokens, marking a 16.7% decrease in circulation over the last month.
Reduced Supplies Pose Challenges for Dollar-Pegged Cryptocurrencies
In the span of ten days, the stablecoin economy witnessed an $890 million contraction, sliding from $128.21 billion to its present value of $127.32 billion. Statistical data indicates a significant reduction in the overall market capitalization of the top dollar-pegged stablecoins since the beginning of 2023.
Back on March 26, 2023, the stablecoin economy boasted a worth of $135.08 billion. Consequently, $7.76 billion has been withdrawn from the dollar-pegged token economy in the last 108 days.
As of now, the stablecoin economy stands at $127.32 billion, having diminished by $890 million within the last ten days.
A 30-day analysis reveals a similar pattern, with four out of the top five stablecoins experiencing supply contractions. Tether (USDT) witnessed a slight decrease of 0.3%, while usd coin (USDC) saw its supply reduced by 3.9%.
Last month, Makerdao’s DAI supply declined by 5.6%, and BUSD experienced a substantial drop of 16.7%. Although Trueusd (TUSD) observed a 41.7% increase in supply over the month, it dropped below the 3 billion mark to reach 2.88 billion tokens. Notably, the global trade volume for stablecoins reached $26.42 billion within the last 24 hours.
With BUSD’s supply contracting by 16.7%, it currently stands at just under 4 billion tokens, specifically 3,997,265,401 at the time of writing. Recent data reveals that Binance holds 3,623,828,575 BUSD across six different wallets.
The top six addresses with the highest BUSD holdings.
Additionally, out of the 2.88 billion TUSD tokens currently in circulation, Binance controls 2.45 billion TUSD, accounting for 90.65% of the total BUSD supply and 85.06% of the TUSD supply.
Considering the substantial reductions in supply for major stablecoins like BUSD and DAI, it raises the question of how long this downward trend will persist. 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 decline
What is the current state of stablecoins in the crypto market?
The current state of stablecoins in the crypto market shows a steady decline in their demand and supply. The dollar-pegged token economy has shrunk, with top stablecoins like BUSD experiencing a 16.7% drop in supply over the past month.
How much has the stablecoin economy contracted in the last ten days?
In the last ten days, the stablecoin economy has contracted by $890 million. It decreased from $128.21 billion to its current value of $127.32 billion.
How much has been removed from the dollar-pegged token economy since the beginning of 2023?
Since the beginning of 2023, approximately $7.76 billion has been removed from the dollar-pegged token economy over the past 108 days.
Which stablecoins have seen reductions in their supplies recently?
Within the last month, several stablecoins have witnessed reductions in their supplies. Tether (USDT) experienced a slight decrease of 0.3%, usd coin (USDC) saw a reduction of 3.9%, Makerdao’s DAI decreased by 5.6%, and BUSD’s supply dropped significantly by 16.7%.
What percentage of BUSD and TUSD supplies are held by Binance?
Binance currently holds 90.65% of the BUSD supply, amounting to 3,623,828,575 BUSD tokens across six different wallets. Additionally, Binance controls 85.06% of the TUSD supply, with 2.45 billion TUSD tokens in their possession.
How long is the downward trend expected to continue?
The duration of the downward trend in stablecoins is uncertain and subject to market dynamics. Factors influencing the trend include market demand, investor sentiment, and regulatory changes.
More about stablecoin decline
- Stablecoin Market Analysis
- Understanding Dollar-Pegged Token Economy
- BUSD Supply Reduction Details
- Tether (USDT) Updates
- USDC Supply Changes
- DAI Supply Reductions
- TrueUSD (TUSD) Supply Statistics
- Binance’s BUSD and TUSD Holdings
