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.
