Stablecoin Market Capitalization Witnessed A Decline To $123.8 Billion
According to data from CCData, the entire market capitalization of stablecoins—a type of digital money linked to traditional assets like fiat—has decreased to $123.8 billion as of September. Since August 2021, when the industry was valued at $137.9 billion in December, this is the lowest position.
In September, #stablecoin trade volume on centralised exchanges, such Coinbase, fell by 28.4% to $331 billion, in addition to the stablecoin market capitalization reduction. Since July 2020, this is the smallest monthly trade volume.
Bloomberg claims that this decline in the stablecoin market is consistent with a general decline in activity in the #cryptocurrency market in 2022 as a result of numerous scandals and bankruptcies.
Tether ($USDT), the dominant stablecoin, has grown its domination while a number of others, including $USDC Coin and $BUSD , have seen their market capitalisation decline. For the first time since March 2021, USDT currently makes up 67.3% of the entire stablecoin market.
PayPal released its stablecoin for payments and transfers in August under the name PayPal USD ($PYUSD). Paxos Trust Company issues PYUSD, which is backed by U.S. dollar deposits and other assets. The broader digital asset market, which underpins the majority of #cryptocurrencies , is still shrinking in spite of PayPal's entry into the stablecoin market.
