The market capitalization of stablecoins has hit the bottom stage since August 2021 approaching the again of 16 consecutive months of decline, a brand new report says.
Cryptocurrency analytics platform CCData launched a report on July 20 saying the stablecoin market cap fell 0.82% from the beginning of the month till July 17, taking the sector’s market cap to $127 billion.
Stablecoin market dominance took a slight fall and is at the moment at 10.3%, dropping from 10.5% in June.
Our newest Stablecoins & CBDCs Report is now reside!
Key Highlights:
✔️16-month fall in stablecoin market cap, now at $127bn
✔️ $USDT at $0.73, $USDC at $0.82 on #Binance.US
✔️ $USDP‘s largest cap drop since 2020, now at $593mnFull Report https://t.co/A9rFx6pbJx
— CCData (@CCData_io) July 20, 2023
Of the top ten stablecoins, Pax Greenback (USDP) was hit hardest, falling 43.1% to $563 million in July — its lowest determine since December 2020.
CCData believes the autumn was largely attributed to MakerDAO — a decentralized autonomous group behind the Maker protocol — which elected to take away $500 million of USDP from its reserves as a result of it didn’t accrue extra income.
Tether (USDT), the largest stablecoin by market cap, managed to report its all-time excessive market cap of $83.8 billion as of July 17, growing its stablecoin market cap dominance to 65.9%.
The market cap of USD Coin (USDC) and Binance USD (BUSD) fell 3.01% and 4.57% to $26.9 billion and $3.96 billion, respectively. For USDC, it’s the seventh consecutive month of decline in its market cap and the bottom since June 2021.
Regardless of consecutive falls, stablecoin buying and selling volumes elevated 16.6% to about $483 billion in June, recording the primary month-to-month enhance since March.
CCData believes the lawsuits against Binance and Coinbase from the Securities and Alternate Fee (SEC) and the surge in spot Bitcoin (BTC) exchange-traded fund filings contributed to the rise in stablecoin buying and selling volumes final month.
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One other main occasion in June was the suspension of fiat deposits on Binance.US because of the SEC’s lawsuit towards the agency. CCData stated this led USDT and USDC to depeg from the U.S. greenback on the trade.
“The suspension of fiat deposits has led to a drastic decline within the liquidity of the [USDT and USDC] stablecoins, leading to a reduction of round 27% and 18% respectively.”
The decentralized stablecoin market, which incorporates Dai (DAI), Frax (FRAX) and USDD (USDD) elevated its market cap by 0.43% to $7.52 billion in July — the primary constructive month since February. The market cap, nevertheless, continues to be 78.1% down from its all-time excessive of $34.3 billion in April.
The start of this downward pattern was triggered by the collapse of the Terra Luna ecosystem and the close to 100% depeg of the algorithmic stablecoin TerraClassicUSD (USTC).
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