A significant shift in stablecoins
According to recent data, the stablecoin economy has experienced a significant decline in value, losing $7.3 billion in 2023. Records show that on January 6, the stablecoin economy was valued at $138.12 billion, but it has since decreased to $130.79 billion. In the past four months, several stablecoin projects suffered significant redemptions, with USDC and BUSD alone losing over $14 billion and $11 billion, respectively. DAI also faced redemptions of $361 million.
However, some stablecoin projects managed to offset these losses with growth. TUSD, for example, started the year with a market capitalization of $846.57 million and now has a market valuation of $2.04 billion, indicating a growth rate of 140.97%. Similarly, USDT witnessed a substantial increase in its market cap, surging by over 25% from $66.29 billion in January to $82.95 billion.
The stablecoin economy’s 24-hour trade volume has also decreased significantly, from $27.11 billion on January 6 to $10.77 billion on May 21. However, this volume still represents a significant portion, accounting for 57.9% of the total 24-hour trading volume within the crypto economy. In contrast, on January 6, the dollar-pegged token volume accounted for 81.36% of the day’s global trade volume across the 12,775 listed crypto assets on coingecko.com.
What are your thoughts on the stablecoin economy’s mass redemptions in the past four months and its current state in 2023? Share your opinions in the comments below.