Stablecoin Economy Sees $3 Billion Drop: Leading USD Tokens Shrink as Euro-Anchored Projects Display Resilience
The stablecoin economy continues to shrink, with more than $3 billion in value removed from today’s top stablecoin valuations in less than 40 days. The dollar-pegged tokens USDP and GUSD experienced the largest 30-day reductions, shedding 45.1% and 27.2%, respectively.
Top Stablecoins Tumble: $3 Billion Evaporates in Less Than 40 Days
Statistics reveal a significant contraction in the stablecoin economy, as billions of dollars have been withdrawn from dollar-pegged projects over the past year. About 39 days ago, the stablecoin economy was valued at $129.80 billion, but it has decreased to $126.70 billion today, with more than $3 billion vanishing since June 16, 2023.
The entire top ten stablecoins by market capitalization, except for tether (USDT), have experienced notable 30-day reductions. While USDT’s supply has increased by 0.6%, usd coin (USDC) has recorded a 30-day decrease of 6.4%. As of Tuesday, July 25, USDC’s market capitalization is $26.63 billion, down from $28.25 billion 39 days ago.
In the past month, DAI has lost 6% of its value, and BUSD has decreased by 10.1%. The stablecoin TUSD saw a reduction of 10.7%, while frax dollar (FRAX) dropped 9.3%. Meanwhile, Tron’s USDD recorded a modest 1.6% loss, and the Paxos-issued pax dollar (USDP) saw its supply dwindle by 45.1% over the same period.
Gemini dollar (GUSD) also experienced a significant loss, dropping approximately 27.2% over the past 30 days. On June 16, the 24-hour trading volume of stablecoins was around $30 billion, but it has since decreased to $23 billion. The global trading volume linked to stablecoin assets has notably declined over the past year.
Conversely, while the value of U.S. dollar-pegged stablecoins has dwindled, euro-anchored projects have recorded growth in the past month. Yet, it’s crucial to note that the volume of these euro-backed stablecoin initiatives significantly trails that of the towering USD token behemoths.
How do you perceive these market shifts in the stablecoin economy? Share your thoughts and opinions about this subject in the comments section below.
