While we can see a constant rise in the price of bitcoin in recent days, the market for stablecoins is no longer doing so well. In the last 44 days, more than $3 billion has been leaked from stablecoins. All this despite the fact that tether’s market capitalization shows a 2 percent increase over the past 30 days. USD Coin’s market cap is down almost 3%, while BUSD’s is down more than 7%.
Stablecoins are still an important part of the crypto market
Overall, the total market capitalization of the top stablecoins has fallen by over $3 billion in the last 44 days. Last December 15, the stablecoin sector had a value of 141.07 billion dollars. Now we can talk regarding a 138 billion dollar stablecoin market. While stablecoin trades account for $45-46 billion of the average $55-60 billion of total daily trading. Three of the top 10 stablecoins have seen their market capitalization decrease in the last 30 days. The aforementioned BUSD token linked to Binance and managed by Paxos suffered perhaps the biggest losses during this period. Its market capitalization expressed in dollars is “barely” 15 billion dollars.
Top 5 stablecoin market capitalization on January 28.
Just for comparison, USDC has a market capitalization of around $43 billion. On December 15, this figure was still over 45 billion dollars. Gemini’s dollar coin, GUSD, suffered similar losses. 44 days ago, its capitalization was 591 million dollars, today it is only around 570 million dollars. It should be mentioned that these are not general stablecoin problems, since, for example, in addition to tether, DAI or the pax dollar also recorded growth. Plus, despite the decline, stablecoins are still an important and dominant part of the overall crypto market. The entire stablecoin market is now estimated to represent nearly 13% of the $1 trillion value of the entire crypto economy. As of January 28, roughly 80% of all crypto trades were related to stablecoins on centralized and decentralized exchange platforms. This means that 7-8 cryptotransactions out of 10 are related to stablecoins.
