CCData Releases Latest “Stablecoins & CBDCs Report”
CCData, a leading benchmark administrator authorized by the FCA and a global leader in digital asset data, has published its September 2023 edition of the “Stablecoins & CBDCs Report.” This report aims to provide insights into significant trends and developments in the stablecoin industry. It focuses on evaluating market capitalization and trading volumes of various stablecoins, categorizing them based on collateral type and pegged assets.
Declining Market Cap for Stablecoins
The stablecoin market has been experiencing a continuous decline for 18 months. As of September 18, 2023, the total market cap of stablecoins has decreased by 0.63% to $124 billion, reaching its lowest point since August 2021. At the same time, stablecoins’ market dominance has also declined from 11.8% in August to 11.6%. Although stablecoin trading volume increased by 10.9% to $462 billion in August, trading activity on centralized exchanges (CEXs) has been sluggish, with only $174 billion traded as of September 18, 2023.
Binance to Phase Out BUSD
Binance, one of the leading cryptocurrency exchanges, has announced its plans to gradually discontinue support for Binance USD (BUSD), its stablecoin, by February 2024. The market cap of BUSD has been shrinking for ten consecutive months, dropping by 19.1% to $2.49 billion in September. The number of BUSD trading pairs on Binance has also decreased from 319 to 224 since the beginning of the year.
Emerging Players and Trading Volumes
PYUSD, a relatively new stablecoin, has experienced a significant increase in trading volumes, reaching $8.46 million in September. Huobi, which listed PYUSD on September 7, accounted for 57% of the trading volume. Additionally, FDUSD has benefited from the decline of BUSD, recording $4.61 billion in trading volume in September, making it the third-largest stablecoin by trading volume.
Top 10 Stablecoins
Tether (USDT) remains the dominant stablecoin, with its market cap increasing by 0.23% to $83 billion in September. Its market dominance also rose from 66.2% to 66.7%. On the other hand, BinanceUSD (BUSD) and FRAX have experienced significant declines among the top 10 stablecoins, with market caps of $2.49 billion and $670 million respectively. FDUSD, developed by First Digital Labs, saw a 21.5% increase in market cap to $394 million, surpassing GeminiUSD (GUSD) as the ninth largest stablecoin. MakerDAO’s DAI also witnessed its market cap rise for the second consecutive month, reaching $5.44 billion with a growth rate of 4.63%.
Stablecoin Trading Volume
The trading volumes for stablecoins increased by 10.9% to $462 billion in August. However, as of September 18, 2023, only $174 billion has been traded, indicating a likely decrease for the month. USDT trading volumes on centralized exchanges decreased by 5.80% to $292 billion in August, with its market dominance in terms of trading volume standing at 64.5%.
USDC Market Cap by Chains
Circle plans to launch its stablecoin, USDC, on six additional blockchains within the next two months. The market cap of USDC has been declining for nine consecutive months, falling by 0.50% to $25.7 billion. Currently, the majority of USDC supply is on Ethereum, accounting for 83.0% of the total. However, with the upcoming expansion to new blockchains such as Polkadot and Cosmos, Ethereum’s share of USDC supply is expected to decrease.
Hot Take: Stablecoin Market Faces Continuous Decline
The latest “Stablecoins & CBDCs Report” by CCData reveals a persistent decline in the stablecoin market’s performance. Despite an increase in trading volume, the overall market cap has reached its lowest point since August 2021. Binance’s decision to phase out BUSD reflects the challenges faced by stablecoins. However, emerging players like PYUSD and FDUSD are gaining traction and contributing to the evolving landscape of stablecoins. As Tether maintains its dominance, other stablecoins experience fluctuations in their market caps and trading volumes. It remains crucial for investors and industry participants to closely monitor these developments as they navigate the volatile world of cryptocurrencies.
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