Stablecoin Market Records $2.4B In Redemptions In 30 Days As Leading Tokens Experience Supply Decline
Redemptions of over 2.4 billion stablecoins were recorded between May 15 and June 15, 2022, reflecting a significant shift in the market. Notably, three prominent stablecoin tokens encountered supply reductions ranging from 4% to 19% compared to the previous month.
By Anna B Kiwanuka
In the realm of stablecoin projects, the diminishing supplies of various tokens have become an ongoing trend, and the past month witnessed notable redemptions for USDC, BUSD, and DAI. The second largest stablecoin, USDC, experienced a 5.7% reduction in its supply, while BUSD saw approximately 19% of its tokens redeemed.
Similarly, Makerdao’s DAI stablecoin witnessed a 4% decline since May 15, 2023. However, amidst these fluctuations, two stablecoins stood out by showcasing increases in their supplies over the last 30 days and that is, tether (USDT) and true usd (TUSD).
Within the span of 30 days, USDT witnessed a 0.9% growth in its supply, reaching an all-time high market valuation of $83.614 billion. In a similar vein, TUSD witnessed a 0.3% rise in its supply, propelling its market capitalization to $2.04 billion as of June 15.
On the other hand, pax dollar (USDP) recorded a 4.8% decrease over the past month, while FRAX managed to inch up 0.2% within the same timeframe. Tron’s USDD saw a reduction of 1%, whereas Gemini’s GUSD suffered a 1.9% decline. Additionally, liquity usd (LUSD) underwent a reduction of approximately 1.9% over the course of the last 30 days.
Redemptions ranging from 1% to 19% have affected the market valuations of seven out of the top ten stablecoins. Since May 15, 2023, roughly 2.471 billion stablecoins have been redeemed, contributing to the overall decline in the stablecoin economy.
The predominantly USD-pegged crypto assets that constitute the stablecoin economy have reached their lowest value in 20 months, and if the trend observed in June persists, a downturn lasting 21 months could be in store.
While BUSD experienced a significant decline of 19%, the losses suffered by other stablecoin projects have resulted in the current value of $128.92 billion. Currently, the stablecoin economy represents 12.12% of the crypto economy’s total value of $1.06 trillion.