Stablecoin Economy Shrinks by $7.3 Billion in 2023, USDC and BUSD Record Mass Redemptions
From the beginning of this year, the crypto economy has surged by 41.77%, reaching a current market capitalization of $1.17 trillion. However, amidst this growth, the stablecoin economy experienced a substantial loss of $7.3 billion within a span of 140 days.
Stablecoins Experience a Significant Shift
As per the latest data, the stablecoin economy has witnessed a $7.3 billion decline in value in 2023. Archived records indicate that on January 6, the stablecoin economy stood at a valuation of $138.12 billion, but as of today, it has dwindled to $130.79 billion. Notably, numerous stablecoin projects experienced substantial redemptions in the past four months, with USDC alone shedding over $14 billion. Similarly, BUSD suffered redemptions exceeding $11 billion since the first week of January, while DAI faced redemptions amounting to $361 million.
While USDC and BUSD experienced redemptions exceeding $7.3 billion in 2023, a few other stablecoin projects managed to counterbalance these losses with growth. Take TUSD, for instance, which started the year with a market capitalization of approximately $846.57 million. Today, this stablecoin boasts a market valuation of $2.04 billion, indicating a growth rate of 140.97%.
Similarly, tether (USDT) witnessed a substantial increase in its market cap. Back in the first week of January, USDT stood at $66.29 billion, but it has since surged by over 25%, reaching $82.95 billion. Back on January 6, 2023, the stablecoin economy recorded $27.11 billion in 24-hour trade volume. However, fast forward to May 21, 2023, and the volume of the dollar-pegged token market has dipped considerably, settling at a comparatively modest $10.77 billion.
Although the current volume may appear smaller, the $10.77 billion worth of stablecoin trades still represents a significant portion, accounting for 57.9% of the total 24-hour trading volume within the entire crypto economy. On the other hand, when the dollar-pegged token volume reached $27.11 billion, it accounted for 81.36% of the day’s global trade volume (on Jan. 6, 2023) across the 12,775 listed crypto assets on coingecko.com at that time.
What do you think about the stablecoin economy in 2023 and the mass redemptions over the past four months? Share your thoughts about this subject in the comments section below.
Source: Bitcoin.com
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Text source: Crypto Breaking News
