Stablecoin Market Cap Drops Near Two Year Low
The stablecoin sector continued to decline in July, falling 0.82% to $127 billion, marking its sixteenth monthly decline to its lowest level since August 2021.
According to the latest Stablecoins & CBDCs report from CCData, USDT remained the dominant stablecoin this month, with a new all-time high market capitalization of $83.8 billion, accounting for 65.9% of the stablecoins sector. In contrast, USDC and BUSD fell 3.01% and 4.57%, respectively, to $26.9 billion and $3.96 billion.
USDC experienced its seventh consecutive monthly decline, reaching its lowest market capitalization since June 2021. The stablecoin market’s dominance fell from 10.5% to 10.3%. However, stablecoin trading volumes rose 16.6% to $482 billion in June, thanks to traditional finance giants like BlackRock, Fidelity, and Invesco listing spot Bitcoin ETFs in the US.
The filings boosted investor optimism, leading to a 10.4% increase in stablecoin trading volume to $125 billion. Fiat trading pairs also saw a 10.4% rise, but their market share fell to an all-time low against stablecoin trading pairs. The stablecoin sector’s decline coincides with rising cryptocurrency prices, with a landmark ruling in favor of the XRP token in the legal battle between the SEC and Ripple.
(With inputs from Shikha Singh)
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