About two months ago on April 11, the stablecoin economy was worth $190 billion and was approaching over $200 billion. However, following the impact of the Terra stablecoin, the fiat-pegged token economy has lost $16.31 billion in value since then. While that value has been wiped from the stablecoin market, stablecoins themselves accounted for 9.35% of the net dollar value of the entire crypto economy at the time. After 61 days, the crypto economy is worth about $1.15 trillion, while the stablecoin economy accounts for 13.8% of the total value today.
Stablecoin dominance surges from 9% to 13.8% in 61 days
36 days ago, on May 6, 2022, for the first time in history, three stablecoins became the top ten digital currencies by market value. At the time it was Tether (USDT), usd coin (USDC) and terrausd (UST), but that was before UST imploded.
While terrausd is gone, there are still 3 stablecoins in the top 10 today, as Binance USD (BUSD) is the seventh-largest crypto asset in terms of market capitalization. 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 day in April, the entire crypto-economy was worth $2.03 trillion, and today it is worth about $1.15 trillion. While Terra’s UST impact has driven billions of dollars out of the stablecoin economy, it dominates much more than it did when it approached $200 billion.
Stablecoins also account for a significant portion of the volume, with fiat-pegged tokens trading at $46.1 billion at the time of writing, compared to $71.6 billion for all crypto assets combined. Data shows that 64.38% of all digital currency transactions today are exchanged with stablecoin pairs.
For example, Tether (USDT) transactions accounted for 60.26% of Bitcoin (BTC) global trading volume, while BUSD accounted for 10.05%. According to metrics from cryptocompare.com, USDT and BUSD are the top two trading pairs for BTC at the time of writing.
Tether (USDT) remains the king of stablecoins, with a market cap of $72 billion and over 6% of the entire crypto-economy. USD Coin (USDC) is the second-largest stablecoin by market cap, worth $53.7 billion.
Today, USDC holds more than 4% of the crypto-economy, and USDC and USDT together account for 76.92% of the entire stablecoin’s 13.40% dominance. Meanwhile, BUSD accounts for 1.58% of the entire crypto-economy. The remaining slightly more than 1% of the crypto economy comes from stablecoins such as DAI, FRAX, TUSD and USDP.
What do you think of the stablecoin economy, which accounts for 13.8% of the entire crypto economy? Let us know what you think about this topic in the comments section below.
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