With the global cryptocurrency market struggling with the bears seemingly in control, stablecoins are also having a tough time.
Over the past 18 months, the market capitalization of stablecoins has seen a successive decline in valuation, Binance’s research department revealed.
The stablecoin’s market capitalization fell to $123.8 billion
according to On-chain analysis On the DeFiLlama blockchain price tracking platform, Binance Research to explain Last month saw a negative record, setting the market cap of stablecoins at $123.8 billion, the lowest level since September 2021.
Despite the downward trends clouding the global stablecoin market, two popular assets from this group – Tether (USDT) and DAI – recorded slight increases.
Maintaining its leading position with a lion’s share of 67.2%, the USDT stablecoin saw an increase of $334.7 million in market cap, representing an upward trend of 0.4% month over month (MoM). Tether’s surge is partly driven by growing demand for the stablecoin on cryptocurrency exchanges. An analysis conducted earlier this week showed that the amount of USDT on exchanges increased from 17.6% to 24.7%.
DAI, the third largest stablecoin by market cap, has seen commendable growth in recent times. Binance Research reveals that the stablecoin owned by MakerDAO saw a $283.4 million increase in market capitalization, representing a 5.4% increase month-on-month.
How fair was the stablecoin market?
Despite the downward trends it has witnessed, the stablecoin market continues to play a vital role in the cryptocurrency space and the global financial system.
This year alone, the market capitalization of stablecoins has seen significant increases. For example, the collapse of financial banks such as Silicon Valley and Silvergate was accompanied by a rise in stablecoin businesses as investors flocked to these assets as a refuge from the collapse of traditional institutions.
In June, the market saw another rally, driven by a rise in the market cap of the TrueUSD stablecoin.
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