- Stablecoin market capitalization hits $123.8 billion, the lowest since September 2021.
- Tether (USDT) and DAI show resilience with modest market cap gains.
- Despite challenges, stablecoins remain crucial in the crypto space and global finance.
The stablecoin market capitalization has recently reached its lowest point in 18 months, plummeting to $123.8 billion, a level not seen since September 2021.
Amidst the current dominance of bearish sentiment in the global cryptocurrency market, stablecoins are grappling with significant challenges.
Binance’s research division has disclosed that the market capitalization of stablecoins has steadily declined over the past 18 months.
Stablecoin Market Cap Falls to $123.8 Billion
According to insights from on-chain analysis on the blockchain price tracking platform DeFiLlama, Binance Research has elucidated that the past month has marked an unfavorable record, pushing the stablecoin market cap to $123.8 billion, its lowest point since September 2021.
Despite the persistent downtrend affecting the global stablecoin market, two prominent assets within this category, Tether (USDT) and DAI, have shown modest increases.
Maintaining its leading position with a commanding 67.2% share, the USDT stablecoin has observed a $334.7 million uptick in market cap, representing a 0.4% month-on-month (MoM) rise. Tether’s increase can be partially attributed to surging demand for the stablecoin on cryptocurrency exchanges. Recent analysis indicates that the amount of USDT held on exchanges has surged from 17.6% to 24.7% earlier this week.
DAI, the third-largest stablecoin by market capitalization, has also exhibited commendable growth in recent times. Binance Research reports that the MakerDAO-owned stablecoin has seen a $283.4 million boost in market cap, equating to a 5.4% MoM increase.
The Resilience of the Stablecoin Market
Despite the prolonged bearish trends it has encountered, the stablecoin market continues to fulfill a crucial role within the cryptocurrency ecosystem and the global financial system.
This year, in particular, the stablecoin market cap has experienced notable expansions. For instance, the turmoil in traditional financial institutions, exemplified by the struggles of banks like Silicon Valley and Silvergate, has coincided with a surge in the stablecoin business, as investors seek refuge in these assets amidst the turmoil in traditional finance.
In June, the market witnessed another upturn, bolstered by a substantial increase in the market capitalization of the TrueUSD stablecoin.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.