Over the past two months, the stablecoin tether has been one of the most traded crypto-assets, exchangeable with countless digital currencies. 66 days ago, on April 11, 2022, Tether’s market cap was over $82 billion, with a circulating supply of 82,694,361,442. Since then, over 12 billion Tethers have been removed from circulation amid the Terra blockchain implosion, the recent cryptocurrency market carnage, and rumors circulating around Celsius and Three Arrows Capital (3AC).
Over 12 Billion Tether Left the Crypto Economy Since April 11
According to market data, the amount of Tether (USDT) in circulation has dwindled from over 82 billion to 70 billion today. On April 11, as the stablecoin economy neared $200 billion, Bitcoin.com News reported rising stablecoin market valuations for all fiat-pegged tokens.
On the day, around 82,694,361,442 tethers were in circulation after the dollar-pegged cryptocurrency rose 3% in the previous month. Since then, 15.30% has been removed from circulation due to a circulating supply of 70,038,816,028 USDT on June 16, 2022, according to coingecko.com metrics.
People have noticed a drop in the number of tethers in circulation, as cryptocurrency advocates have been discussing the topic on social media. Most of the USDT in circulation has been removed since the terrausd (UST) decoupling event, as the number of Tethers in circulation on May 12, 2022 was 82.79 billion.
Two days later, on May 14, the number of Tethers in circulation dropped 7.25% to $76.7 billion, according to coingecko.com statistics kept on Archive.org. In a 33-day period, another 8.73% have been removed from circulation since May 14.
USDC’s market cap has grown over the past 2 months, Tether has the largest share of global trade volumes
Meanwhile, Tether’s competitor USD Coin (USDC) has grown over the past two months. According to coingecko.com metrics recorded on archive.org, as of April 16, 2022, the total amount of USDC in circulation is approximately 50,090,822,252 tokens. Since then, over the past two months, the amount of USDC has grown to 54,582,713,063, or an 8.96% increase.
During the terrausd (UST) fiasco, the number of USDC slipped to 49,122,170,211 on May 12. The USDC in circulation then grew from a zone of 49.12 billion to 53,804,005,416 on June 10th. The issuance of USDC has increased slightly since then. Circle also announced this month the launch of the Euro Coin (EUROC), which is backed 1:1 with the euro.
Data recorded on June 16 shows that USDT has the largest share of global cryptocurrency trading volume, accounting for $51.41 billion of Thursday’s $96.31 billion in volume. This means that 53.37% of all crypto trades on Thursday were paired with USDT.
By comparison, USDC’s trading volume on June 16 was dwarfed, as the stablecoin recorded $5.93 billion or 6.15% of global crypto trading volume in the past 24 hours. Cryptocompare data recorded on June 16 shows that USDT transactions account for 56% of Bitcoin (BTC) trading volume. And USDC accounted for 2.77% of all BTC trades on Thursday.
What do you think of the decline in the number of tethers in circulation? Let us know what you think about this topic in the comments section below.
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