Analytics
Reading time: ~2 m
The share of algorithmic stablecoins in the stablecoin segment fell from 12.4% shortly before the Terra USD crash in April 2022 to the current 1.71%. Such estimates were given by CryptoCompare analysts.
Data: CryptoCompare.
UST accounted for 79.8% of the algostablecoin market at its peak.
In general, the capitalization of stablecoins has been declining for the tenth month in a row. In December 2022, centralized platforms recorded an outflow of tokens in the amount of $3.65 billion. Experts associated it with doubts about the solvency of Binance.
Data: CryptoCompare.
“The decline in the dominance of stablecoins suggests that market participants are converting funds into risky assets,” analysts explained.
USDT maintains its leading position with a market share of 48.7%, the highest since October 2021. The capitalization of the asset is $66.7 billion (an increase of 0.82%), followed by USDC and BUSD with $43.1 billion (-2.27%) and $16.1 billion (-3.97%), respectively.
Data: CryptoCompare.
In the study, experts also touched on the topic of the “stablecoin war” after Coinbase introduced a zero fee for transferring Tether to USDC in December 2022. Prior to this, Binance implemented automatic conversion of USDC, USDP and TrueUSD to BUSD.
Previously, Bank of America researchers recognized the natural evolution of money and payments in digital currencies, CBDCs, and stablecoins. A similar point of view was also presented by Visa CEO Alfred Kelly.
Sanctions, stablecoins and CBDC: how cryptocurrencies were regulated in 2022
#market #share #algostablecoins #collapsed #tenfold
