Stablecoin volumes reach their lowest level in history

According to a report by Glassnote, the total number of stablecoins decreased by a total of $ 8.4 billion, according to experts, that this is the largest decline in history.

The aftermath of the Terra collapse has affected the rest of the stablecoin ecosystem as the number of tokens released into circulation continues to decline. This phenomenon is observed in all stablecoins, but after the fall, two managed to recover.

The total number of stablecoins continues to decline

At the time of setting the records, the total market capitalization of all stablecoins combined was almost $ 200 billion According to CoinGecko, which also reports a daily trading volume of $ 63.8 billion, today the figure fell to $ 162.7 billion.

In its weekly on-chain report, Glassnode calls the situation with stablecoins a “chain reaction of unstable coins” when it describes how the collapse of UST led to the fall of other stablecoins.

Last week, Tether briefly deviated from the peg to the dollar, but managed to recover. According to a report by Tether, the total number of USDT tokens fell by almost 12% from a peak of $83.2 billion earlier this month to $73.4 billion.

Excluding UST, Binance USD is the third largest stablecoin by market capitalization. The volume of coins is approaching record levels and amounts to just over $ 18 billion, having recovered after falling on May 12 to $ 16.5 billion.

The USDC Circle stablecoin is often seen as a safer alternative due to the fact that it is fully regulated. According to the company, USDC Circle tokens are in circulation for $ 52.3 billion Glassnode reported a drop in the volume of tokens to $ 48.4 billion immediately after the collapse of Terra, but the stablecoin managed to recover.

MakerDAO’s decentralized stablecoin – DAI – faced a reduction in the volume of tokens by a whopping 24.4%, as 2 billion DAI were burned.

Market capitalization falls again

The fall of the crypto market has led to a decrease in the total number of stablecoins, as traders and investors transfer money to fiat.

Over the past day, markets fell another 3.5%, which led to a drop in total market capitalization to $ 1.3 trillion – the lowest level since a similar decline in July last year.

Now the situation is at a decisive stage. The next level is $300 billion lower and is $1 trillion in terms of total capitalization. Crypto markets haven’t been as low since January 2021, and analysts warn that the bears may not have finished yet.

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