Stablecoins Market Cap Shrinks for 14th Straight Month

Stablecoins Market Cap Shrinks for 14th Straight Month


The stablecoin sector’s market capitalization has reached its lowest level since September 2021, with stablecoin trading volumes falling by 40.6%, according to CCData’s latest report, while JPMorgan’s chief global markets strategist warns investors to reevaluate their portfolios amid global recession fears.

These 30 days the total market cap of the crypto stablecoin sector within the digital currency space has reached its weakest point since September 2021, marking its fourteenth consecutive 30 days of decline, as it dropped 0.45 percent to $130 Billion as of May 23.

Reports by CCData’s latest Crypto Stablecoins & CBDCs report, crypto stablecoin trading volumes dropped these 30 days by 40.6 percent to 460 billion, recording the lowest monthly volume of trading since December 2022. As of May 22, the report adds, only $292 Billion have been traded, with volumes on track to record an even lower volume.

The report adds that despite the fact that the total crypto stablecoin market cap dropped these 30 days, its dominance within the digital currency space rose to 11.1 percent as the cryptocurrency market contracts and major digital currencies remain range-bound after failing to break through key resistance levels.

1 crypto stablecoin that bucked the bearish tendency was TrueUSD (TUSD), whose trading volumes on centralized platforms of trading totaled $29 Billion as of May 23, making it the second- largest crypto stablecoin by volume of trading over BUSD and USDC. Growing demand and liquidity even saw the crypto stablecoin trade at $1.208.

The report likewise details that while USDT balances on centralized digital currency platforms of trading bounced back to pre- FTX Trading Ltd collapse levels of $9.33 billion, USDC and DAI balances on these platforms have dropped to their weakest point since March 2021.

The report comes at a time in which JPMorgan’s chief worldwide markets strategist Marko Kolanovic has suggested investors reevaluate their portfolios amid worldwide fall fears, recommending investors reduce their stock holdings and diversify into cash and gold as a precautionary measure.

Kolanovic recently expressed concerns in a memorandum regarding the buoyant rally of stocks in the year, which have seen a near 10 percent boost to date.

His comments were accompanied by a note of discord regarding the optimism of the fed funds futures, which anticipate numerous interest price cuts by year’s end. Such a scenario, Kolanovic argues, is unlikely to herald positive  tendency trends, as these cuts would typically only be introduced as a response to a severe economic downturn or a jolt to the financial markets.

It’s worth noting that, Poland’s monetary authority has amassed 14.8 tonnes of gold in April, signaling the nation’s proactive response to economic uncertainties.

Reports by the report, the net worth of the country’s gold, comprising gold deposits and swapped gold, escalated to a substantial $15.52 Billion in April, compared to the preceding value of $14.55 billion.

Featured Image via Unsplash

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