Stablecoin trading volume on CEX exchanges has decreased
However, despite the overall increase in market capitalization, stablecoin trading volumes on centralized exchanges fell to a monthly low of $829 billion on May 23. The report noted that trading activity on centralized exchanges typically declines in the two months following a Bitcoin halving event, indicating a cyclical pattern in market behavior.
The CCData report concludes that the total stablecoin market capitalization has now recovered from the losses incurred since the collapse of the Terra Luna ecosystem and the unpegging of the algorithmic stablecoin TerraClassicUSD (USTC) by almost 100%.
This event started a seventeen-month downtrend, but recent growth indicates a strong recovery and renewed confidence in stablecoins as a critical component of the cryptocurrency ecosystem.
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