The stablecoin economy is undergoing a downward shift as it loses over $3 billion in less than 40 days from prominent stablecoin valuations. The largest reductions over the past 30 days are seen in USDP and GUSD, USD-pegged tokens, with a decline of 45.1% and 27.2% respectively.
Data shows a considerable shrinkage in the stablecoin economy, with billions being pulled out of dollar-tied projects in the past year. About 39 days back, the stablecoin economy stood at $129.80 billion. However, it has now dwindled to $126.70 billion, marking a disappearance of over $3 billion since June 16, 2023.
Excluding tether (USDT), all the top ten stablecoins, in terms of market capitalization, have observed considerable 30-day reductions. While USDT’s supply rose by 0.6%, usd coin (USDC) has seen a 6.4% decrease over 30 days. As of Tuesday, July 25, USDC’s market capitalization is $26.63 billion, a decline from $28.25 billion 39 days earlier.
In the last month, DAI has seen a 6% dip in value, while BUSD declined by 10.1%. TUSD, a stablecoin, underwent a 10.7% reduction, whereas frax dollar (FRAX) plunged by 9.3%. Tron’s USDD experienced a minor 1.6% loss, and the Paxos-issued pax dollar (USDP) saw its supply fall by 45.1% in the same period.
Gemini dollar (GUSD) also faced a substantial decrease, dropping about 27.2% over the previous 30 days. On June 16, the 24-hour trading volume of stablecoins hovered around $30 billion, but has since shrunk to $23 billion. The worldwide trading volume related to stablecoin assets has significantly fallen over the past year.
On the other hand, despite the diminishing value of U.S. dollar-pegged stablecoins, euro-linked projects have seen growth in the past month. However, it’s important to remember that the volume of these euro-backed stablecoin initiatives is substantially less than the dominating USD token giants.
Frequently Asked Questions (FAQs) about Stablecoin Economy
What is the current trend in the stablecoin economy?
The stablecoin economy is experiencing a significant contraction, with more than $3 billion in value removed from top stablecoin valuations in less than 40 days. Notably, USD-pegged tokens such as USDP and GUSD have suffered the largest reductions, while euro-anchored projects are demonstrating resilience.
Which stablecoins have seen the largest reductions in the past 30 days?
USDP and GUSD, both USD-pegged tokens, have faced the most substantial reductions over the past 30 days. USDP supply dwindled by 45.1%, while GUSD dropped approximately 27.2%.
How has the value of the stablecoin economy changed recently?
About 39 days ago, the stablecoin economy was valued at $129.80 billion. However, it has now decreased to $126.70 billion today, marking a disappearance of more than $3 billion since June 16, 2023.
How have Euro-anchored stablecoin projects performed in comparison to USD stablecoins?
While the value of U.S. dollar-pegged stablecoins has been decreasing, euro-anchored projects have recorded growth in the past month. However, the volume of these euro-backed stablecoin initiatives significantly trails that of the USD token projects.
The 24-hour trading volume of stablecoins was around $30 billion on June 16. However, it has since decreased to $23 billion, indicating that the global trading volume linked to stablecoin assets has notably declined over the past year.
More about Stablecoin Economy
- Understanding Stablecoins
- Euro-anchored Stablecoins Growth
- Decline in Stablecoin Economy
- Exploring the USD Stablecoin Market
- Overview of USDP and GUSD
- Euro-backed vs. USD-pegged Stablecoins