More than 2.4 billion stablecoins were redeemed between May 15 and June 15, 2022, according to data. Three of the top stablecoins had a decrease in supply between this time frame and the previous one, ranging from 4% to 19%.
The economy of Stablecoin Declines
The availability of different tokens is dwindling in the world of stablecoin projects; major redemptions for USDC, BUSD, and DAI occurred in the previous month. While BUSD had almost 19% of its tokens redeemed, USDC, the second-largest stablecoin, saw its supply decline by 5.7%.
Similar to this, from May 15, 2023, Makerdao’s DAI stablecoin has seen a 4% decrease. However, despite these oscillations, tether (USDT) and true usd (TUSD), two stablecoins, stood out by displaying growth in their supply during the past 30 days.
In just 30 days, the supply of USDT increased by 0.9%, resulting in an all-time high market valuation of $83.614 billion. Similar to this, TUSD’s supply increased by 0.3%, increasing its market value to $2.04 billion as of June 15.
The pax dollar (USDP), on the other hand, saw a 4.8% decline over the last month, while FRAX achieved a 0.2% increase over the same period. The USDD on Tron fell by 1%, while the GUSD on Gemini fell by 1.9%. Additionally, during the past 30 days, the value of the Liquity USD (LUSD) fell by almost 1.9%.
Seven out of the top ten stablecoins’ market values have been impacted by redemptions ranging from 1% to 19%. Approximately 2.471 billion stablecoins have been redeemed since May 15, 2023, which has impacted the stablecoin economy as a whole.
The stablecoin economy, which is dominated by USD-pegged crypto assets, has seen its lowest value in 20 months, and if the June trend holds, a 21-month decline may be in store.
While BUSD saw a huge fall of 19%, other stablecoin projects also suffered losses, which led to the current value of $128.92 billion. The stablecoin market now accounts for 12.12% of the $1.06 trillion global crypto economy’s total value.