On April 11, two months prior, the stablecoin currency was worth $190 billion. The value of this stablecoin was approaching $200 billion. The Terra stablecoin collapse resulted in the token’s fiat-pegged value losing $16.31 million. While that value was erased from the stablecoin market, stablecoins themselves represented 9.35% of the entire crypto economy’s net U.S. dollar value at the time. Today, the crypto market is valued at approximately $1.15 Trillion. The stablecoin economy accounts for 13.8%.
Stablecoin Dominance was Swelled in Just 61 Days from 9% to 13%
On May 6, 2022 on the 36th, three stablecoins became the top ten most valuable digital currencies. It was tether, usd coin and terrausd at the time. However that was prior to the implosion of UST.
While terrausd is gone, there’s still three stablecoins in the top ten today, as binance usd (BUSD) is the seventh-largest crypto asset as far as market cap is concerned. The stablecoin industry was worth $190 billion two months ago, on April 11. Today it is valued at $159 billion.
On that day in April, the entire crypto economy was valued at $2.03 trillion and today it’s worth roughly $1.15 trillion. Even though Terra’s UST fallout saw billions leave the stablecoin economy, it dominates by a lot more than it did when it was nearing $200 billion.
Stablecoins also account for a lot of the trade volume. At the time of writing fiat-pegged tokens had seen $46.1 Billion in trade volume while crypto assets saw $71.6 Billion. According to data, 64.38% are traded against stablecoins.
For instance, tether (USDT) trades account for 60.26% of bitcoin’s (BTC) global trade volume while BUSD commands 10.05%. USDT and BUSD are BTC’s top two trading pairs at the time of writing, according to cryptocompare.com metrics.
With a market value of $72 billion, Tether (USDT), is the reigning king of stablecoins. This valuation represents over 6% of all crypto economies. With $53.7 billion of value, Usd coin (USDC), is the second largest stablecoin in terms of market capital.
USDC is the dominant crypto currency today, accounting for more than 4 percent of all the coins. USDC and USDT together make up 76.22% of total stablecoin dominance at 13.40%. BUSD is 1.58% of crypto’s total economy. The crypto economy still has 1% that is derived from stablecoins such as DAI, FRAX and TUSD.
You think the stablecoin market, which accounts for 13.8% of all crypto economies? Comment below and let us know how you feel about the subject.
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