It seems that the circulation of the usd stablecoin has decreased while that of tether has grown, as the latest statistics paint a contrasting picture. Tether saw a 3% increase in coins in circulation over the past month, while the US dollar-pegged crypto asset currency USD saw a decline of about 4.9% over the same time period. From January 6, 2023 to February 10, approximately $2.196 billion in coins were redeemed in the last month.
Monitoring Recent Stablecoin Economy Movements Amid 2023 Regulatory Crackdown
According to current statistics, the entire stablecoin market cap lost $625,009,636 in value of January 6, 2023, until today. A significant portion of the losses can be attributed to the second largest stablecoin by market capitalization, the usd coin (USDC).
Data shows that USDC declined 4.9% in about 30 days, resulting in a loss of 2.196 million overall valuation since January 6. By contrast, Tether saw a 3% rise, mitigating some of USDC’s losses in terms of the overall market capitalization of the entire stablecoin economy.
The third largest stablecoin by market valuation, BUSD, has lost 0.5% in the last 30 days. Statistics posted on January 6 indicate that the market capitalization of BUSD was around $16.79 billion, and currently, the current market capitalization is around $16.19 billion.
The rest of the dominant stablecoins in the top ten saw 30-day increases in terms of coins in circulation, including DAI, FRAX, TUSD, USDP, USDD, and GUSD. Tron’s USDD was up 1.3%, USDP was up 3.3%, and the number of TUSD coins in circulation over the past month was up 11.9%.
As of now, the stablecoin economy accounts for about 12.9% of the total crypto economy, and their trade volume accounts for 81.4% of the total cryptocurrency trade volume. The data suggests that approximately 8 out of 10 transactions in the cryptocurrency market are made with a stablecoin.
Stablecoins have been a part of the cryptocurrency economy for some time, and dollar-pegged tokens have recently benefited from the 5% slump of the cryptocurrency economy after the US Securities and Exchange Commission. The US (SEC) sanctioned Kraken for its staking service.
The future of the stablecoin market and individual stablecoins within it is uncertain, but with ongoing regulatory challenges and trends, it pays to pay attention. Stablecoins have long dominated in terms of trade volume, but only recently have the number of coins in circulation decreased significantly.
What are your thoughts on the stablecoin market action of late and the decline in dollar-pegged coins in circulation? Share your thoughts on this topic in the comments section below..
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