Stablecoin Market Approaches 15% Market Valuation of Entire Crypto Economy Cryptocurrency & ICOs


About two months ago, on April 11, the stablecoin economy was valued at $190 billion and approaching over $200 billion in value. However, after the fallout from the Terra stablecoin, the fiat token economy has lost $16.31 billion in value since then. While that value was erased from the stablecoin market, the stablecoins themselves represented 9.35% of the net US dollar value of the entire crypto economy at the time. 61 days later, the crypto economy is worth roughly $1.15 trillion and the stablecoin economy accounts for 13.8% of that total today.

In 61 days, stablecoin dominance increased from 9% to 13.8%

For the first time ever, three stablecoins were the top ten digital currencies in terms of market valuation 36 days ago, on May 6, 2022. At the time, they were tether (USDT), usd coin (USDC), and terrausd. (UST), but that was before the UST imploded.

While terrausd is gone, there are still three stablecoins in the top ten today as binance usd (BUSD) is the 7th largest crypto asset when it comes to market cap. Two months ago, on April 11, the stablecoin economy was valued at $190 billion, but today, the stablecoin market valuation is now $159 billion.

The Stablecoin Market Is Nearing 15% Of The Market Valuation Of The Entire Crypto Economy
On May 6, just before UST de-pegged from the $1 peg, tether, usd coin, and terrausd were the top three stablecoins among the top ten coins with the largest market capitalization. Today, with the demise of UST, BUSD has entered the top ten rankings.

On that day in April, the entire crypto economy was valued at $2.03 trillion and today it is worth roughly $1.15 trillion. Even though the fallout from the Terra UST caused billions to leave the stablecoin economy, it dominates far more than it did when approaching $200 billion.

The Stablecoin Market Is Nearing 15% Of The Market Valuation Of The Entire Crypto Economy
On April 11, 2022, the stablecoin’s market capitalization of $190 billion was equal to 9.3% of the $2.03 trillion of the entire crypto economy. Today, at $159 billion, the stablecoin economy is now 13.8% of the value added of $1.15 trillion.

Stablecoins also account for a large amount of trading volume, and at the time of writing, fiat tokens have recorded a trading volume of $46.1 billion, while all crypto assets combined have recorded $71.6 billion. The data shows that 64.38% of all digital currency transactions today are traded against stablecoin pairs.

For example, tether (USDT) trades account for 60.26% of global bitcoin (BTC) trading volume, while BUSD commands 10.05%. USDT and BUSD are the top two BTC trading pairs at the time of writing, according to metrics from cryptocompare.com.

Tether (USDT) remains the king of stablecoins with a market valuation of $72 billion accounting for more than 6% of the entire crypto economy. USD Coin (USDC) is the second largest stablecoin by market capitalization with a value of $53.7 billion.

USDC dominates over 4% of the crypto economy today and combined, both USDC and USDT account for 76.92% of the total stablecoin dominance of 13.40%. Meanwhile, BUSD represents 1.58% of the entire crypto economy. That leaves just over 1% of the crypto economy coming from stablecoins like DAI, FRAX, TUSD, and USDP.

Tags in this story
Altcoins, Bitcoin (BTC) Pairs, BUSD, DAI, Fiat Tokens, FRAX, MIM, Stablecoin, Stablecoin Economy, Stablecoin Pairs, Stablecoins, Terrausd (UST), Trade Volume, Transactions, tusd, USDC, USDP, USDT

What do you think about the stablecoin economy that accounts for 13.8% of the entire crypto economy? Let us know what you think about this topic in the comments section below.

jamie redman

Jamie Redman is the news lead at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.

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