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

Another major event in June was the suspension of fiat deposits on Binance.US due to the SEC’s lawsuit against the firm. CCData said this led USDT and USDC to depeg from the U.S. dollar on the exchange.

“The suspension of fiat deposits has led to a drastic decline in the liquidity of the [USDT and USDC] stablecoins, resulting in a discount of around 27% and 18% respectively.”

The decentralized stablecoin market, which includes Dai (DAI), Frax (FRAX) and USDD (USDD) increased its market cap by 0.43% to $7.52 billion in July — the first positive month since February. The market cap, however, is still 78.1% down from its all-time high of $34.3 billion in April.

The beginning of this downward trend was triggered by the collapse of the Terra Luna ecosystem and the near 100% depeg of the algorithmic stablecoin TerraClassicUSD (USTC).

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