$1.52 Billion Disappears from Stablecoin Market in 30 Days
The market for fiat-pegged cryptocurrencies, mainly consisting of stablecoins backed by the USD, has been shrinking and is currently just above the $123 billion mark as of September 30, 2023.
Stablecoin Economy Shrinks by $1.52 Billion in September
Looking back at archived figures, it is evident that just 30 days earlier, on September 1, the stablecoin market was valued at $124.57 billion. This means that over the course of September, a total of $1.52 billion was wiped off the market.
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Tether Maintains its Position as the Largest Stablecoin
Tether (USDT), the largest stablecoin in terms of market capitalization, saw a slight increase of 0.5% in its supply during September, reaching a total valuation of $83.22 billion. Tether accounts for 67.65% of the entire stablecoin market.
USD Coin and DAI Experience Reductions
USD Coin (USDC), the second-largest stablecoin, saw a 4% decrease in its supply over the past 30 days and now has a market cap of $25.10 billion. Makerdao’s DAI also experienced a 2% contraction, bringing its valuation to $3.81 billion.
Trueusd Shows Significant Growth, BUSD Loses Supply
Trueusd (TUSD) witnessed an 18.6% increase in supply during the previous month, reaching a total value of $3.44 billion and becoming the largest gainer among the top five stablecoins. On the other hand, BUSD lost a substantial 26.4% of its supply, leaving it just above the $2 billion mark with a valuation of $2.25 billion.
Frax Dollar and USDD Experience Contractions
In September, Frax Dollar (FRAX) saw its supply decrease by 16.9%, resulting in a value of $669.65 million. Tron’s USDD, on the other hand, increased by 0.6%, reaching a market cap of $726.87 million.
Pax Dollar Faces Reduction in Supply
Pax Dollar (USDP) experienced a 3.8% reduction in its supply. With the stablecoin market currently at $123 billion, this marks the lowest point since September 2021, taking us back two years.
Hot Take: Stablecoin Market Shrinks as Redemptions Increase
The stablecoin market has seen a significant decline over the past month, with a total of $1.52 billion being redeemed from September 1 to September 30, 2023. This has resulted in reductions in the supplies of various stablecoins, including FRAX and BUSD. It remains to be seen how this trend will continue and what impact it will have on the overall crypto market.
