Top Stablecoins Tumble: $3 Billion Evaporates in Less Than 40 Days
The stablecoin economy has experienced a significant contraction, with billions of dollars being withdrawn from dollar-pegged projects. Here are the key points:
- The stablecoin economy has decreased from $129.80 billion to $126.70 billion in just 39 days, with over $3 billion disappearing since June 16, 2023.
- All top ten stablecoins, except for tether (USDT), have seen reductions in the past 30 days.
- USD coin (USDC) has decreased by 6.4% in market capitalization, while USDT has increased by 0.6%.
- DAI has lost 6% of its value, BUSD has decreased by 10.1%, TUSD dropped 10.7%, FRAX decreased by 9.3%, and GUSD experienced a significant loss of 27.2%.
- The 24-hour trading volume of stablecoins has decreased from $30 billion to $23 billion over the past month.
While the value of USD-pegged stablecoins has dwindled, euro-backed projects have seen growth. However, the volume of these euro-backed stablecoin initiatives is significantly lower than that of USD tokens.
Hot Take
The stability of the stablecoin economy is being tested as billions of dollars are being withdrawn. This decline raises concerns about the overall confidence in stablecoins and their ability to maintain their peg to the US dollar. The growth of euro-backed stablecoin projects suggests a diversification trend, but it remains to be seen if they can catch up to the dominance of USD-pegged stablecoins.
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