Economy Of Stablecoins Faces A Major Fall, Loses $3 Billion In 44 Days

The crypto market data firms have reported that the stablecoin market has shed a tremendous amount in the past 44 days.

The overall valuation of the stablecoin market has recorded a dip worth several billion in the mentioned period.

This is a major downtrend that the stablecoin market has witnessed and the situation is still not looking good for the particular market.

Stablecoin Market Records a $3 Billion Loss

According to the figures, the overall market capitalization of the stablecoin market has recorded an almost $3 billion dip. The data has been tracked since December 15, 2022.

This goes to show that in a matter of 44 days, the market valuation of the stablecoin industry has recorded a huge dip.

On December 15, the overall valuation of the stablecoin market was at a high of $141.07 billion. On the same day, the trading volume recorded for the overall crypto market was at $52.91 billion.

However, out of the total trading volume, $44.55 billion were represented by the top stablecoin swaps.

As of January 28, 2023, the overall stablecoin market capitalization has dropped to $138.07 billion. The overall trading volume recorded in the entire crypto market is $58.76 billion.

Out of the total trading volume, $46.33 billion belongs to the stablecoin swaps. The stablecoins that have lost most of their market valuations are the ones considered the top three stablecoins.

Segregated Market Valuation Declines

The statistics collected by the tracking firms have revealed that USD Coin (USDC), the largest stablecoin has lost 2.9% of its overall valuation.

Compared to the rest of the major stablecoins, it is Binance USD (BUSD) that has recorded a major dip in the past 30 days.

According to the statistics, the overall market capitalization of BUSD has recorded a 7.2% dip in the past 30 days.

For BUSD, the situation has been worse than for the rest of the stablecoins. This is because its valuation has continued declining since November 2022 just as the Binance exchange released its proof-of-reserve.

As the exchange shared its PoR, it had data that was shady, according to many crypto market gurus and highly influential crypto figures.

This raised concerns among the investors who started to abandon the Binance exchange, withdrawing their funds in masses.

The investors also continued releasing their BUSD investments, which caused a major dip in the overall valuation of the particular stablecoin.

Following the declines, the overall valuation of BUSD has come all the way down to $15.8 billion.

As for USDC, the market capitalization of the second-largest stablecoin was at $43 billion on Saturday. A look at the December 15 market capitalization of USDC shows that it was at a high of $45 billion.

This goes to show that the market capitalization of USDC alone has recorded a $2 billion dip in the past 44 days.

Then comes Gemini Dollar (GUSD) which has also recorded a decline in the past 44 days. The overall valuation of GUSD on December 15, 2022, was at a high of $591 million. After 44 days, it has dropped to $571 million.

While many stablecoins recorded slides, some stablecoins recorded significant surges. These stablecoins include Pax Dollar (USDP), TrueUSD (TUSD), DAI, and even the largest stablecoin, Tether (USDT).

The data shows that the market valuation of MakerDAO (DAI) recorded a 1% increase in the past 30 days. The valuation of TUSD recorded a 25.3% surge in the same period.

Then comes the Pax Dollar which has recorded a 5.1% surge in overall market valuation. The largest stablecoin, USDT has recorded a 2% surge in its overall market valuation.

Other stablecoins such as MIM also recorded a 3.9% surge in their valuation, which is issued by Abracadabra.

The valuation of Liquity USD (LUSD) has also experienced a major surge in the past 30 days. Despite the decline in the valuations for the stablecoins, the overall cryptocurrency market valuation has surged over $1 trillion.