This month the overall market capitalization of the stablecoin sector inside the cryptocurrency house has reached its lowest stage since September 2021, marking its fourteenth consecutive month of decline, because it fell 0.45% to $130 billion as of Might 23.
In keeping with CCData’s newest Stablecoins & CBDCs report, stablecoin buying and selling volumes fell this month by 40.6% to 460 billion, recording the bottom month-to-month buying and selling quantity since December 2022. As of Might 22, the report provides, solely $292 billion have been traded, with volumes on monitor to file an excellent decrease quantity.
The report provides that though the overall stablecoin market capitalization fell this month, its dominance inside the cryptocurrency house rose to 11.1% because the crypto market contracts and main cryptocurrencies stay range-bound after failing to interrupt by means of key resistance ranges.
One stablecoin that bucked the bearish pattern was TrueUSD (TUSD), whose buying and selling volumes on centralized buying and selling platforms totaled $29 billion as of Might 23, making it the second-largest stablecoin by buying and selling quantity above BUSD and USDC. Rising demand and liquidity even noticed the stablecoin commerce at $1.208.
The report additionally particulars that whereas USDT balances on centralized cryptocurrency buying and selling platforms bounced again to pre-FTX collapse ranges of $9.33 billion, USDC and DAI balances on these platforms have dropped to their lowest stage since March 2021.
The report comes at a time by which JPMorgan’s chief world markets strategist Marko Kolanovic has steered buyers reevaluate their portfolios amid world recession fears, recommending buyers scale back their inventory holdings and diversify into money and gold as a precautionary measure.
Kolanovic not too long ago expressed issues in a memorandum relating to the buoyant rally of shares this 12 months, which have seen a close to 10% rise up to now.
His feedback had been accompanied by a be aware of discord relating to the optimism of the fed funds futures, which anticipate a number of rate of interest cuts by 12 months’s finish. Such a situation, Kolanovic argues, is unlikely to herald bullish traits, as these cuts would sometimes solely be launched as a response to a extreme financial downturn or a jolt to the monetary markets.
Notably, Poland’s central financial institution has amassed 14.8 tonnes of gold in April, signaling the nation’s proactive response to financial uncertainties.
In keeping with the report, the online value of the nation’s gold, comprising gold deposits and swapped gold, escalated to a considerable $15.52 billion in April, in comparison with the previous worth of $14.55 billion.
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