Stablecoin Market Cap Dips Near Two Year Low
According to a recently released report by CCData, total stablecoin market cap fell by 0.45% in the past month. This means it’s fallen for 14 consecutive months and currently sits at $130 billion — its lowest level since September 2021.
At the same time, stablecoin market dominance has risen to 11.1% in the overall crypto market, possibly a bearish sign for crypto.
The decline in stablecoin market cap coincides with an exit of liquidity from crypto exchanges. Metrics by numerous sources, including the Block, confirm that May was the lowest month in terms of crypto trading volume on exchanges since the beginning of 2022.
This decline in overall liquidity is paired with a heavy decline in stablecoin trading volume, which according to CCData fell in May by 40.6% to $460 billion. This represents the lowest monthly trading volume by stablecoins on centralized exchanges since December 2022.
(With inputs from Shikha Singh)
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