- Pax Dollar (USDP) lost the most value in the top ten stablecoins
- Tether reached an all-time high of almost $84 billion
- Stablecoin trading volumes reached $483 billion in June, an increase of 17%
The stablecoin market capitalization has fallen down to its levels in August 2021 after almost a year and a half of consistent decline, Cointelegraph wrote, citing a report by CCData, a cryptocurrency analytics platform.
According to the report, which was released on July 20, the stablecoin market cap has dropped to $127 billion. Its market dominance is currently at 10.3%.
The biggest loser: Pax Dollar
Pax Dollar (USDP) lost the most value of all top ten stablecoins. It fell 43.1% to $563 million in July this year, its lowest level in almost three years.
The dramatic decline is mainly due to MakerDAO’s decision to eliminate half a billion of USDP from its reserves because it was not generating extra revenue. The DAO is behind the Maker Protocol.
Tether holds steady
Tether (USDT), the biggest stablecoin by market cap, reached an all-time high of almost $84 billion. It accounts for two-thirds of stablecoin market cap value.
Binance USD (BUSD) and USD Coin (USDC) lost 4.57% and 3% to $4 billion and $27 billion, respectively. This is the seventh month in a row that USDC has been losing value. Its market cap is currently at its lowest in two years.
Stablecoin trading is on the rise
Stablecoin trading volumes reached $483 billion in June, an increase of about 17% and the first increase in more than three months. According to CCData, the high number of spot Bitcoin ETF filings and SEC’s lawsuits against Binance and Coinbase played a role in this development.
Binance deposit suspension hurt liquidity
CCData added the suspension of fiat deposits on Binance’s US arm after the lawsuit led USDC and USDT to lose their pegs to the USD on Binance, resulting in a dramatic decline of the stablecoins’ liquidity. It led to a discount of 27% on USDT and 18% on USDC.
Decentralized stablecoins down 78% from ATH
The decentralized stablecoin market, which includes USDD, DAI, and FRAX, has seen a capitalization decline of 78.1% from its all-time high of $34 billion in April 2023.
