{"id":177287,"date":"2023-06-22T05:39:25","date_gmt":"2023-06-22T05:39:25","guid":{"rendered":"https:\/\/precoinnews.com\/?p=177287"},"modified":"2023-06-22T05:39:25","modified_gmt":"2023-06-22T05:39:25","slug":"stablecoin-market-cap-shrinks-to-lowest-level-since-september-2021-ccdata-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/stablecoin-market-cap-shrinks-to-lowest-level-since-september-2021-ccdata-report\/","title":{"rendered":"Stablecoin Market Cap Shrinks to Lowest Level Since September 2021: CCData Report"},"content":{"rendered":"
The crypto market has seen a shift in the winds, as the total market capitalization of stablecoins experienced a decrease of 0.57% to $128 billion in June, the lowest it\u2019s been since September 2021, according to the latest Stablecoins & CBDCs report by CCData.<\/p>\n
The figures mark the fifteenth consecutive month of decline in the stablecoin market. Amidst the downward trend, however, the market dominance of stablecoins rose to 11.8%, in a decrease from its all-time high of 16.6% in December 2022, but an increase from 11.0% in May, showing the fluctuating nature of the market.<\/p>\n
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Last month, according to the report, the trading volume of stablecoins fell 10% to $414 billion, the lowest level in nearly six months, when major cryptocurrencies remained range-bound and volatility in the space was relatively low.<\/p>\n
The leading stablecoin, Tether (USDT), saw its trading volume fall by a significant 29.9% to $293 billion in May. This is the lowest trading volume for the stablecoin since January 2020, and marks the second consecutive month of decline in USDT trading volume.<\/p>\n
The market cap of USDT had a slight increase of 0.03% to $83.2 billion in June, after momentarily reaching an all-time high of $83.3 billion. The market share of USDT in the stablecoin sector also increased slightly to 64.6% in June from 64.3% in May.<\/p>\n
Stablecoins experienced a brief moment of instability on June 15 when USDT momentarily deviated from its peg, falling as low as $0.9878, after an imbalance occurred in the Curve 3pool. The disruption was caused by a substantial selling of the asset, which resulted in Tether\u2019s weightage in the pool rising above 70%, outweighing other stablecoins like USDC and DAI.<\/p>\n
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Meanwhile, the market share of fiat trading pairs fell to 18.8% in June after the trading volume of fiat pairs plunged 33.9% to $99.7 billion. Fiat trading pairs have been witnessing a downward trend due to issues faced by exchanges with their banking partners.<\/p>\n