USD 2.4 Billion Pulled Out in 30 Days from Stablecoin Market
Statistics have revealed that in the 30 days from May 15 to June 15, 2023, more than 2.4 billion stablecoins redeemed. During this period, three of the leading stablecoins experienced a decline in their supplies ranging from 4% to 19% compared to the previous month.
Leading Stablecoins Witness Supply Decline
The recent trends have seen supplies dwindle and redemptions surge in the world of stablecoin projects. Over the past month, popular stablecoins like USDC, BUSD, and DAI experienced significant declines. USDC, the second-largest stablecoin, saw its supply shrink by 5.7%, while BUSD witnessed a substantial 19% of its tokens being redeemed.
Makerdao's DAI stablecoin also experienced a 4% decline since May 15, 2023 highlighting the challenges faced by these digital assets. On the flip side, tether (USDT) and true usd (TUSD) defied the odds by showcasing supply increases over the past 30 days.
USDT emerged as the star performer, with a 0.9% growth in its supply in the last 30 days, reaching an all-time high market valuation of USD 83.614 billion. TUSD also made strides, witnessing a 0.3% rise in its supply, pushing its market capitalization to USD 2.04 billion as of June 15.
However, not all stablecoins enjoyed a smooth ride. Pax dollar (USDP) suffered a 4.8% decrease over the past month, while FRAX managed a modest 0.2% increase. Tron's USDD took a hit with a 1% reduction, and Gemini's GUSD experienced a 1.9% decline. Liquity USD (LUSD) also faced a downward trend, witnessing a reduction of approximately 1.9% over the last 30 days.
Redemptions and Fluctuations Impact Stablecoin Economy
The impact of these redemptions and fluctuations reverberated across the stablecoin market, affecting the market valuations of seven out of the top ten stablecoins. A staggering 2.471 billion stablecoins have been redeemed since May 15, 2023, contributing to an overall decline in the stablecoin economy.
In fact, the stablecoin economy, largely composed of USD-pegged crypto assets, has reached its lowest value in 20 months. If the current trend persists, experts speculate a prolonged downturn lasting 21 months could be on the horizon.
While BUSD experienced a significant decline of 19%, the collective losses suffered by stablecoin projects have led to a current value of USD 128.92 billion. As of now, the stablecoin economy represents 12.12% of the crypto economy's total value of USD 1.06 trillion.
The performance of the stablecoin economy over the past month has sparked much discussion and debate. What are your thoughts on these developments?
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