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Stablecoin market cap drops to lowest since September 2021: Report

1min Read

The total market cap of stablecoins experienced a fall of 0.57% to $128 billion in June 2023 — the lowest figure since September 2021.

Stablecoin market cap drops to lowest since September 2021: Report

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  • The figures represent the fifteenth consecutive month of decline in the stablecoin market.
  • USDT saw its trading volume decline by 29.9% to $293 billion in May — the lowest since January 2020.

The market capitalization of stablecoins witnessed a fall of 0.57% to $128 billion in June, according to the latest CCData Stablecoins & CBDCs report. This is the lowest figure since September 2021.

The figures represent the fifteenth consecutive month of decline in the stablecoin market. Despite a drop in overall stablecoin market value, market dominance increased to 11.8%, rising from 11.0% in May. This is now lower than its all-time high (ATH) of 16.6% experienced in December 2022.

stablecoin market cap

Source: CCData

The trading volumes of stablecoins dropped by 10% to $414 billion in May, the lowest monthly trading volume on centralized exchanges (CEXes) since December 2022. The fall in trading volume was due to key crypto assets remaining range-bound and failing to break major support and resistance levels.​

USDT takes a hit

Tether (USDT), the leading stablecoin, saw its trading volume decline by 29.9% to $293 billion in May. This was the lowest trading volume for USDT since January 2020, and it is the second consecutive month of decline in its trading volume.

In June, the market cap of USDT increased by 0.03% to $83.2 billion, after briefly surpassing its previous all-time high (ATH) market cap of $83.3 billion.

On 15 June, the stablecoin briefly depegged, plummeting as low as $0.9878.​ The disruption was triggered by a significant sale of the asset, resulting in USDT’s weightage in the pool exceeding 70%, outweighing other stablecoins.

Relative to stablecoin trading pairs, the market share of fiat trading pairs declined to 18.8% in June after the trading volume of fiat pairings fell by 33.9% to $99.7 billion. Fiat trade pairs have been plummeting as a result of the challenges the exchanges are facing with their banking partners.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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