Over the last 11 days, more than 7 billion USDC stablecoins were withdrawn from circulation, with the majority of redemptions occurring after the USDC unpegging event on March 11, 2023. Also, since March 6 , a total of 439.48 million BUSD stablecoins have been withdrawn. redeemed
Stablecoin Unpegging Event Triggers Billions in Redemptions
The stablecoin landscape has undergone significant changes this month after a stablecoin de-pegging event took place on March 11. During this time, the USDC fell to a low of $0.877 per coin, and half a dozen other stablecoins also de-pegged from the value of the US dollar on the same day. However, USDC and the other stablecoins have since been re-pegged, with the Circle stablecoin trading for $1 on various centralized trading platforms on Friday. On March 6, approximately 43.89 billion USDC were in circulation and 11 days later, 7,089,389,744 USDC have been redeemed.
As of March 17, 2023, metrics show that in the last 30 days, the number of USDC in circulation has decreased by 10.2%. According to stablecoin market data from coingecko.com, there are currently approximately 36.8 billion USDC stablecoins in circulation. During the unpegging event, the USDC doubled the volume on record today, which is $6,328,716,602 in global USDC trade volume over the last 24 hours. Over the past day, BUSD’s 24-hour trade volume outperformed USDC, which has the third-highest stablecoin trade volume.
On Friday afternoon (ET), data showed that BUSD had a global 24-hour trade volume of $8,289,546,285 across various exchanges. A snapshot from archive.org from 11 days ago, on March 6, indicates that 439,484,014 BUSD had been redeemed. At that time, approximately 8,689,408,012 BUSD were in circulation, while today the figure has dropped to 8,249,923,998. According to Nansen backup test data, Binance owns 7.42 billion BUSD. Data from the Coingecko.com stablecoin market shows that over the past 30 days, the amount of BUSD in circulation has decreased by 46.3%.
While 7.528 billion USDC and BUSD have been removed from the stablecoin economy, tether (USDT), the largest stablecoin by market cap, has seen an 8.7% increase in the number of coins in circulation. Tether now has an overall market valuation of approximately $75.29 billion, with 75.17 billion USDT On circulation. Additionally, on Friday, tether’s $80.38 billion global trade volume dwarfed any other coin in the entire crypto economy in terms of transactions settled within 24 hours. BUSD and USDC have the second and third largest volume of stablecoins, respectively.
What do you think the future holds for stablecoins after the recent decoupling event? Will they regain their stability or will their value continue to fluctuate? Share your thoughts in the comments below.
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