Stablecoins Hit Lowest Level in Two Years, Binance Research Report Shows
A recent monthly market report by Binance Research has revealed that stablecoins have hit a low of US$123.8 billion, marking the 18th consecutive month of decline. The report highlights that September was a relatively stable month for the cryptocurrency market, with minimal fluctuations in total market capitalization. However, disruptions such as the announcement of FTX asset liquidation and the FOMC meeting briefly impacted the market. Stablecoins are now at their lowest level since September 2021, which Binance Research attributes to various factors including elevated interest rates.
Shifting Landscape in DeFi Perpetuals
The report also highlights significant changes in DeFi perpetuals during September. ApolloX experienced impressive month-on-month growth of 450% in its trading volume market share, challenging established protocols like dYdX and GMX for market dominance. This indicates a shifting landscape in which new contenders are emerging.
Growing Uncertainty Amid Economic Events
The crypto market is facing growing uncertainty due to major economic events and the looming U.S. government shutdown. While some markets continue to decline, Binance Research’s report also identifies positive developments for certain companies to consider.
Hot Take: Stablecoin Decline Raises Concerns for Crypto Market Stability
The continuous decline of stablecoins raises concerns about the stability of the overall crypto market. With stablecoins hitting their lowest level in two years, it indicates a potential lack of confidence in these assets. Factors such as elevated interest rates and disruptions from external events contribute to this decline. Additionally, the emergence of new contenders in DeFi perpetuals challenges established protocols, further adding to the uncertainty in the market. As economic events unfold and the possibility of a government shutdown looms, the crypto market must navigate these challenges to maintain stability and foster growth.
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