Dollar-Pegged Cryptos Feel the Pinch as Supplies Shrink Steadily
The stablecoin economy has experienced a significant decline in value, dropping by $890 million in the past ten days. The net value of the top dollar-pegged market capitalizations has been steadily shrinking since the beginning of 2023. On March 26, 2023, the stablecoin economy was valued at $135.08 billion, indicating a loss of $7.76 billion over the past 108 days.
Main Breakdowns:
- Tether (USDT) saw a slight drop of 0.3% in supply
- USD Coin (USDC) experienced a reduction of 3.9%
- Makerdao’s DAI witnessed a 5.6% reduction
- Binance USD (BUSD) supply dropped by 16.7%
- TrueUSD (TUSD) supply is still up by 41.7%, but dropped below 3 billion tokens
The stablecoin economy had a global trade volume of $26.42 billion in the past 24 hours. Currently, BUSD’s supply stands at approximately 3,997,265,401 tokens, with Binance holding the majority in six different wallets. Similarly, Binance also controls 90.65% of the BUSD tokens and 85.06% of the TUSD supply.
Hot Take:
The decline in the stablecoin economy is concerning, especially with the shrinking supplies of popular dollar-pegged cryptocurrencies. The dominance of Binance in holding significant portions of BUSD and TUSD raises questions about centralized control. It remains to be seen how this trend will impact the overall stability of the crypto market.
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