The Fed’s latest rate cut is expected to take a heavy toll on stablecoins, with $625 million in lost interest income for every 50 basis points cut. A further cut in 2024 could push the total loss to $1.5 billion per year.
Tether (USDt), which holds $93.2 billion in bonds, is expected to come under heavy pressure.
Circle (USDC), with $28.7 billion in assets, will also face major difficulties.
Despite this, the stablecoin market cap increased by 1.50% in September to $172 billion. However, trading volume on centralized exchanges fell by 39.4%, potentially signaling a decline in monthly trading activity.
💹 USDt leads with 77.2% of total trading volume, followed by FDUSD with 11.6% and USDC with 10.9%.
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