Stablecoin

USDC

BUSD

Pax Dollar

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The stablecoin market has been facing a prolonged period of decline, with the market capitalization hitting its lowest point since August 2021, according to a recent report by cryptocurrency analytics platform CCData. The report, released on July 20, highlights a concerning 0.82% fall in the market cap from the start of the month until July 17, bringing the total market cap to $127 billion. 
Amidst this downturn, the market dominance of stablecoins experienced a slight dip, currently standing at 10.3% compared to 10.5% in June. Within the top ten stablecoins, Pax Dollar (USDP) took the hardest hit, plummeting by 43.1% to $563 million in July, marking its lowest figure since December 2020. 
The decline in Pax Dollar’s value was largely influenced by MakerDAO’s decision to remove $500 million of USDP from its reserves. This move came as a result of the protocol’s failure to generate additional revenue, impacting Pax Dollar’s market position significantly. 
In contrast, Tether $1.00, the largest stablecoin by market cap, reached an all-time high market cap of $83.8 billion on July 17, strengthening its dominance in the stablecoin market to 65.9%. 
The USD Coin (USDC) and Binance USD (BUSD) experienced a decline of 3.01% and 4.57% in their respective market caps, totaling $26.9 billion and $3.96 billion. USDC’s market cap has now fallen for seven consecutive months, reaching its lowest level since June 2021. 
However, amidst the continuous falls, stablecoin trading volumes witnessed a surprising 16.6% increase, reaching approximately $483 billion in June. This marked the first monthly upswing in trading volumes since March, and CCData attributes this rise to the surge in spot Bitcoin $29,900 exchange-traded fund filings and the SEC lawsuits against Binance and Coinbase. 
Another contributing factor to the fluctuations in stablecoin trading volumes was the suspension of fiat deposits on Binance.US due to the SEC’s lawsuit against the platform. As a result, USDT and USDC depegged from the U.S. dollar on the exchange, leading to a significant decline in liquidity, resulting in discounts of around 27% and 18%, respectively. 
On the other hand, the decentralized stablecoin market, comprising Dai (DAI), Frax (FRAX), and USDD (USDD), experienced a positive turn in July. The market cap increased by 0.43% to $7.52 billion, marking the first upward movement since February. Despite this growth, the market cap remains 78.1% below its all-time high of $34.3 billion in April. 
The initial decline in the stablecoin market was triggered by the collapse of the Terra Luna ecosystem and the nearly 100% depeg of the algorithmic stablecoin TerraClassicUSD (USTC). 
In conclusion, the stablecoin market has been grappling with a prolonged period of decline, reaching its lowest point since 2021. Nevertheless, recent developments in trading volumes and the decentralized stablecoin market show signs of potential recovery. As the crypto landscape continues to evolve, stability and adaptability will be key for these digital assets to navigate the challenges ahead. 
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The post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/stablecoin-dominance-slides-as-market-cap-falls-to-near-2-year-lows-ccdata/">Stablecoin Dominance Slides as Market Cap Falls to Near 2-Year Lows: CCData</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Stablecoin Dominance Slides as Market Cap Falls to Near 2-Year Lows: CCData

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