The market capitalization of the stablecoin economy on July 2, 2023, has fallen below the $129 billion mark to the current $128.21 billion, according to statistics. Just over $2 billion in stablecoins have been withdrawn from the stablecoin token economy since May 28.
Stablecoin Economy Faces Contraction as Market Capitalization Dips Below $129 Billion
The value of the crypto economy has risen over the past 30 days; however, the stablecoin economy experienced a loss of over $2 billion in June. According to data, on May 28, the net value of the stablecoin economy was $130.28 billion, whereas it currently stands at $128.21 billion. This indicates that stablecoin redemptions amounted to $2.07 billion over the past 30 days.
According to current statistics archived on July 2, three out of the top five stablecoins by market valuation experienced redemptions. Tether (USDT) and trueusd (TUSD) witnessed gains in the past 30 days, with USDT increasing by a mere 0.1%. In contrast, TUSD surged by 49.4% compared to the previous month, resulting in its market cap expanding from $2 billion to the current $3.05 billion.
Among the top five stablecoins, USDC, DAI, and BUSD experienced redemptions. Usd coin (USDC) had 5.5% of its supply redeemed, DAI recorded a loss of 5.7%, and BUSD saw a reduction of 20.2% in its supply over the past month. The supply of USDC dropped to 27.32 billion, while DAI’s supply decreased to 4.34 billion, and BUSD’s supply was reduced to 4.13 billion.
The stablecoin economy has significantly contracted since last year, reaching its lowest value in approximately 21 months. Additionally, stablecoin trade volumes have declined. However, the sector of dollar-pegged tokens still represents a majority of the overall trading pairs in the crypto market. Out of the entire $26.80 billion in trade volume across the entire crypto economy, a total of $15.86 billion in trades involved stablecoin assets.
What implications could the contraction of the stablecoin economy and the rise in redemptions have on the broader cryptocurrency market? Share your thoughts and opinions about this subject in the comments section below.