[From $3.6 trillion to $1.2 trillion: Stablecoin transfer volume drops alarmingly]
According to data from DefiLlama, the total market value of fiat-pegged stablecoins reached $172.7 billion this weekend, an increase of 27.93% from $134.99 billion in January 2024.
Currently, 83.82% of stablecoins on the market are issued on Ethereum or Tron, of which Ethereum accounts for 48.9% and Tron accounts for 34.92%. Other major networks include BNB Chain (3.18%), Arbitrum (2.58%), and Base (2.14%). The top five stablecoins are USDT, USDC, DAI, USDE, and FDUSD.
However, stablecoin transfer volumes have continued to decline since peaking at $3.6 trillion in May, reaching just $1.6 trillion last month and currently sitting at $1.2 trillion this month. Ethereum and Tron processed $309.2 billion and $282.9 billion respectively, and combined accounted for 49.34% of the month’s transfer volume.
While Bitcoin and cryptocurrency prices rose between March and May, the decline in stablecoin transfer volumes reflects a change in market sentiment that may be related to reduced speculative trading and increased regulatory pressure. In addition, the rise of income-generating stablecoins (such as USDE) shows that some stablecoins are gradually being regarded as investment assets rather than just daily trading tools.
Despite the decline in transfer volumes, stablecoin trading volume still far exceeds that of other non-stablecoin cryptocurrencies, demonstrating its importance in the market.
