About two months ago, on April 11, the stablecoin economy was valued at $190 billion and approaching $200 billion in value. However, after the Terra stablecoin breakout, the fiat-pegged token economy has since lost $16.31 billion in value. While that value was erased from the stablecoin market, stablecoins themselves accounted for 9.35% of the total value of the US dollar in the crypto economy at the time. 61 days later, the crypto economy is worth about $1.15 trillion and the stablecoin economy today represents 13.8% of that total.
Stablecoin’s dominance rose from 9% to 13.8% in 61 days
For the first time in history, three stablecoins were in the top ten digital currencies in terms of market valuation 36 days ago on May 6, 2022. Back then, they were tether (USDT), usd coin (USDC) and terrausd (UST), but that was before the UST implosion.
Although Terrausd is gone, three stablecoins are still in the top ten today as binance usd (BUSD) is the seventh largest crypto asset by market cap. Two months ago, on April 11, the stablecoin economy was valued at $190 billion, but today the stablecoin market is now valued at $159 billion.
On that day in April, the entire crypto economy was valued at $2.03 trillion and today it is worth about $1.15 trillion. Although Terra’s UST fallout caused billions to leave the stablecoin economy, it dominates by much more than when it approached $200 billion.
Stablecoins also account for a ton of trading volume, and at the time of writing, fiat-pegged tokens have seen $46.1 billion in trading volume, while all crypto assets combined totaled $71.6 billion. The data shows that 64.38% of all digital currency transactions today are traded against stablecoin pairs.
For example, Tether transactions (USDT) account for 60.26% of the global bitcoin (BTC) trading volume, while BUSD commands 10.05%. USDT and BUSD are the two best trading pairs of BTC at the time of writing, according to cryptocompare.com statistics.
Tether (USDT) is still the king of stablecoins with a market value of $72 billion representing more than 6% of the entire crypto economy. USD Coin (USDC) is the second largest stablecoin by market capitalization with a value of $53.7 billion.
USDC dominates today with more than 4% of the crypto economy and combined both USDC and USDT make up 76.92% of the entire stablecoin dominance of 13.40%. Meanwhile, BUSD represents 1.58% of the entire crypto economy. That leaves just over 1% of the crypto economy stemming from stablecoins such as DAI, FRAX, TUSD and USDP.
What are your thoughts on the stablecoin economy that represents 13.8% of the entire crypto economy? Let us know what you think about this topic in the comments section below.
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