Stablecoin dominance slides as market cap falls to near 2-year lows: CCData
The market capitalization of stablecoins has hit the lowest level since August 2021 coming on the back of 16 consecutive months of decline, a new report says.
Cryptocurrency analytics platform CCData released a report on July 20 saying the stablecoin market cap fell 0.82% from the start of the month until July 17, taking the sector's market cap to $127 billion.
Stablecoin market dominance took a slight fall and is currently at 10.3%, dropping from 10.5% in June.
Our latest Stablecoins & CBDCs Report is now live!Key Highlights:✔️16-month fall in stablecoin market cap, now at $127bn✔️ $USDT at $0.73, $USDC at $0.82 on #Binance.US✔️ $USDP's largest cap drop since 2020, now at $593mnFull Report https://t.co/A9rFx6pbJx
Of the top ten stablecoins, Pax Dollar (USDP) was hit hardest, falling 43.1% to $563 million in July — its lowest figure since December 2020.
CCData believes the fall was largely attributed to MakerDAO — a decentralized autonomous organization behind the Maker protocol — which elected to remove $500 million of USDP from its reserves because it failed to accrue additional revenue.
Tether (USDT), the largest stablecoin by market cap, managed to record its all-time high market cap of $83.8 billion as of July 17, increasing its stablecoin market cap dominance to 65.9%.
The market cap of USD Coin (USDC) and Binance USD (BUSD) fell 3.01% and 4.57% to $26.9 billion and $3.96 billion, respectively. For USDC, it is the seventh consecutive month of decline in its market cap and the lowest since June 2021.
Despite consecutive falls, stablecoin trading volumes increased 16.6% to about $483 billion in June, recording the first monthly increase since March.
CCData believes the lawsuits against Binance and Coinbase from the Securities
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