- The market share of stablecoins has decreased to 10.3% from 10.5% in June.
- Pax Dollar (USDP) was the most impacted of the top ten stablecoins.
According to a recent analysis, the total value of all stablecoins has dropped for the sixteenth month in a row, to almost a level not seen since August of 2021. According to research published on July 20 by CCData, a cryptocurrency analytics platform, the stablecoin market worth dropped by 0.82% between the beginning of the month and July 17, bringing the market size of the sector to $127 billion.
Our latest Stablecoins & CBDCs Report is now live!
— CCData (@CCData_io) July 20, 2023
Key Highlights:
✔️16-month fall in stablecoin market cap, now at $127bn
✔️ $USDT at $0.73, $USDC at $0.82 on #Binance.US
✔️ $USDP's largest cap drop since 2020, now at $593mn
Full Report 👇https://t.co/A9rFx6pbJx
The market share of stablecoins has decreased to 10.3% from 10.5% in June. Pax Dollar (USDP) was the most impacted of the top ten stablecoins, dropping 43.1% to $563 million in July, its lowest amount since December 2020.
According to CCData’s analysis, the decline was caused in large part by MakerDAO’s decision to liquidate $500 million in USDP from its reserves after failing to generate additional income. MakerDAO is the decentralized autonomous organization underlying the Maker protocol. As of July 17th, Tether (USDT) dominates with a 65.9% market cap share of all stablecoins.
Light of Hope
Both Binance USD (BUSD) and USD Coin (USDC) saw their market caps drop, with USDC dropping 3.01% to $26.9 billion and BUSD dropping 4.57% to $3.96 billion. This is the lowest market cap for USDC since June 2021 and the seventh consecutive monthly fall.
Despite a string of declines, June saw a 16.6 percent gain in stablecoin trade volumes to $483 billion, the first monthly increase since March. Thus, providing investors with a light of hope.
Stablecoin trading volumes increased last month, according to CCData, which attributes the rise in part to the Securities and Exchange Commission’s (SEC) litigation against Binance and Coinbase and the subsequent spike in the number of registrations for spot Bitcoin exchange-traded funds.
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