Stablecoin Economy Continues to Grow
As cryptocurrencies have dropped in value during the last two weeks and the crypto economy fell below the $2 trillion range, stablecoins issuance continues to fill demand. At the time of writing, the entire stablecoin economy is valued at $185 billion and it increased by 9.92% since December 30, 2021. The current value of all the stablecoins in existence today, represents 10.41% of the $1.77 trillion crypto economy. Moreover, the trade volume stablecoins are seeing on February 22, 2022, is around $62.7 billion, which equates to 61.47% of today’s crypto trade volumes worldwide.
While tether (USDT) is the largest stablecoin, in terms of market capitalization, the $79.6 billion dollar cap only increased by 1.3% this past week. On the other hand, usd coin’s (USDC) market capitalization swelled by 21.6% and BUSD’s cap grew by 27.9%. Terra’s UST has seen issuance increase by 11% and Makerdao’s DAI spiked by 6.1%. The Avalanche-based magic internet money (MIM) saw its market capitalization fall by a whopping 40.6% during the last seven days.
Variety of Stablecoin Market Caps Declined, Tether Commands 84% of Today’s Stablecoin Trade Volume
Besides frax (FRAX), the rest of the top stablecoins under MIM, all the way to the 12th position, have seen their market caps decline. FRAX increased by 2.6% this past week accruing an overall valuation of around $2.66 billion. The biggest stablecoin USDT is nearing $80 billion and just recently, the second largest stablecoin by market cap, USDC jumped over the $50 billion mark. Meanwhile, the Binance Smart Chain stablecoin asset BUSD is steadily nearing the $20 billion mark at $18.3 billion today.
BUSD and USDC were the third and fourth largest stablecoin gainers this week, but gemini dollar (GUSD) saw an increase of 50.4% this week. Another stablecoin called bean (BEAN) saw its valuation swell by 30.8%. Furthermore, due to this week’s increase, BUSD has entered the top ten crypto assets by market capitalization.
While there’s a myriad of stablecoins today, statistics indicate that tether (USDT) commands $53.2 billion of today’s $62.7 billion in dollar-pegged token swaps. This means that out of all the stablecoins in existence today, USDT’s massive trade volume represents 84.84% of the aggregate stablecoin trades on Tuesday.
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