Stablecoin Economy Loses Another $3 Billion in 44 Days Cryptocurrency

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The stablecoin economy continues to deplete as over $3 billion has been wiped from the stablecoin market ecosystem in the last 44 days. While stats show Tether’s market valuation has increased by 2% in the past 30 days, USD coin market cap has fallen by 2.9%, BUSD valuation has lost 7.2% over the past 30 days. from last month and the market capitalization of the Gemini dollar fell by 1.5%.

$3 billion in dollar-pegged tokens wiped out in 44 days as stablecoin trading accounts for nearly 80% of global crypto trading volume

The aggregate value of major stablecoins by market cap has lost around $3 billion in the last 44 days or since December 15, 2022. At that time, the stablecoin economy was worth $141.07 billion. On that day, stablecoin trade accounted for $44.55 billion out of the $53.91 billion in global trade volume.

The total market capitalization of the entire stablecoin economy as of January 28, 2023.

After losing over $3 billion, the stablecoin economy is valued at $138.07 billion and stablecoin exchanges are worth $46.33 billion of the $58.76 billion in global transactions on January 28, 2023. Out of the top ten stablecoin assets, three market caps lost value in the last 30 days.

Statistics show that the usd coin (USDC) lost 2.9% over the past month, and BUSD lost the most with a reduction of 7.2% in 30 days. The BUSD token affiliated with Binance and managed by Paxos has seen a significant number of redemptions over the past few months. At the time of writing, the aggregate market capitalization of BUSD in US dollars is $15.8 billion.

Top five stablecoins by market capitalization as of January 28, 2023. USDC has lost 2.9% and BUSD has lost 7.2% in the past 30 days in terms of tokens in circulation.

USDC’s market capitalization as of Saturday is approximately $43 billion. On December 15, 2022, the valuation was around $45 billion. Similarly, the market capitalization of the Gemini dollar (GUSD) was around $591 million 44 days ago, and today it is around $571 million. While there were a few stablecoin projects that saw market caps drop, tether, DAI, trueusd (TUSD), and pax dollar (USDP) saw increases.

Tether (USDT) has seen a 2% increase in coins in circulation over the past 30 days. Makerdao’s DAI rose 1% and trueusd (TUSD) rose 25.3%. Pax Dollar (USDP) rose 5.1% and Tron USDD saw a slight increase of around 0.6% in the past 30 days. Liquidity usd (LUSD) managed to rise 24.4% over the past month, and Abracadabra’s stablecoin MIM jumped 3.9%.

While tens of billions of stablecoins have been wiped out since last year, they still represent a dominant force in the crypto economy. Since May 2022, three stablecoin assets have remained in the top ten market capitalization positions: USDT, USDC, and BUSD. USDT and USDC have held the top ten spots for much longer.

Additionally, the entire stablecoin economy, valued at $138 billion, represents 12.71% of the value of the entire $1 trillion crypto economy. By trading volume alone on Saturday, January 28, stablecoins accounted for 78.85% of all crypto asset transactions globally on centralized and decentralized exchanges (dex). This means that more than seven out of ten crypto asset exchanges today have traded for a stablecoin.

Tags in this story $3 billion, 30 days, 44 days, Abracadabra, Assets, Binance, BUSD, BUSD decline, Centralized, Circulation, Crypto, crypto-economy, Cryptocurrency, DAI, decentralized exchange, decline, Dollar- Pegged, Dominance, Economy, Gemini Dollar, Global, Liquidity, loss, LUSD, makerdao, market, Market capitalization, market positions, MIM, Pax dollar, Paxos, redemptions, Stablecoin, Stablecoin Economy, Tether, Tether (USDT), Top Ten, trade, tron, trueusd, usd coin, usd coin (USDC), USDD, value, volume

What does the recent decline in the stablecoin economy mean for the overall cryptocurrency market? Share your opinion in the comments.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.

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