Roughly two months ago, on April 11, the stablecoin economy was estimated at $190 billion and approaching the $200 billion mark. However, after the collapse of the stablecoin Terra, the fiat-pegged token economy has since lost $16.31 billion in value. Although this value was erased from the stablecoin market, stablecoins themselves at the time represented 9.35% of the net worth of the entire crypto economy in US dollars. After 61 days, the crypto economy is worth roughly $1.15 trillion, and today the stablecoin economy is 13.8% of that amount.
In 61 days, stablecoin dominance increased from 9% to 13.8%.
For the first time in history, three stablecoins entered the top ten digital currencies in terms of market valuation 36 days ago, May 6, 2022. At the time it was tether (USDT), usd coin (USDC) and terrausd (UST), but that was before the UST crash.
Even though terrausd is no more, there are still three stablecoins in the top ten today as binance usd (BUSD) is the seventh largest crypto asset in terms of market cap. Two months ago, on April 11, the stablecoin economy was valued at $190 billion, but today the stablecoin market is valued at $159 billion.
On that April day, the entire crypto economy was valued at $2.03 trillion, and today it is worth roughly $1.15 trillion. Even though UST has caused billions of people to leave the stablecoin economy, UST is dominating a lot more than when it was approaching $200 billion.
Stablecoins also account for all of the trading volume, and at the time of writing, fiat-pegged token trading volume was $46.1 billion, while all crypto assets combined were $71.6 billion. The data shows that 64.38% of all digital currency transactions today are made with stablecoins.
For example, a cable (USDT) trades represent 60.26% of Bitcoin (BTC) world trade volume, while BUSD is 10.05%. USDT and BUSD BTCthe top two trading pairs at the time of writing, as measured by cryptocompare.com.
Tether (USDT) is still the king of stablecoins with a market valuation of $72 billion, representing over 6% of the entire crypto economy. The 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 combines both USDC and USDT make up 76.92% of the total stablecoin with a dominance of 13.40%. Meanwhile, BUSD makes up 1.58% of the entire crypto economy. There remains just over 1% of the crypto economy based on stablecoins such as DAI, FRAX, TUSD and USDP.
What do you think about the stablecoin economy, which makes up 13.8% of the entire crypto economy? Let us know what you think about it in the comments section below.
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Credit : news.bitcoin.com