Stablecoin Market Records $2.4B in Redemptions in 30 Days as Leading Tokens Experience Supply Decline

According to statistics, over the span of 30 days, from May 15 to June 15, 2022, more than 2.4 billion stablecoins were redeemed. During this period, three of the leading stablecoins experienced a decline in their supplies ranging from 4% to 19% compared to the previous month.

Stablecoin Economy Slips Lower

In the realm of stablecoin projects, the diminishing supplies of various tokens have become an ongoing trend, and the past month witnessed notable redemptions for USDC, BUSD, and DAI. The second largest stablecoin, USDC, experienced a 5.7% reduction in its supply, while BUSD saw approximately 19% of its tokens redeemed.

Similarly, Makerdao’s DAI stablecoin witnessed a 4% decline since May 15, 2023. However, amidst these fluctuations, two stablecoins stood out by showcasing increases in their supplies over the last 30 days — tether (USDT) and true usd (TUSD).

Within the span of 30 days, USDT witnessed a 0.9% growth in its supply, reaching an all-time high market valuation of $83.614 billion. In a similar vein, TUSD witnessed a 0.3% rise in its supply, propelling its market capitalization to $2.04 billion as of June 15.

On the other hand, pax dollar (USDP) recorded a 4.8% decrease over the past month, while FRAX managed to inch up 0.2% within the same timeframe. Tron’s USDD saw a reduction of 1%, whereas Gemini’s GUSD suffered a 1.9% decline. Additionally, liquity usd (LUSD) underwent a reduction of approximately 1.9% over the course of the last 30 days.

Redemptions ranging from 1% to 19% have affected the market valuations of seven out of the top ten stablecoins. Since May 15, 2023, roughly 2.471 billion stablecoins have been redeemed, contributing to the overall decline in the stablecoin economy.

The predominantly USD-pegged crypto assets that constitute the stablecoin economy have reached their lowest value in 20 months, and if the trend observed in June persists, a downturn lasting 21 months could be in store.

While BUSD experienced a significant decline of 19%, the losses suffered by other stablecoin projects have resulted in the current value of $128.92 billion. At present, the stablecoin economy represents 12.12% of the crypto economy’s total value of $1.06 trillion.

What do you think about the stablecoin economy’s performance over the past month? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News https://ift.tt/wnKrlRA