The stablecoin of the Terra (LUNA) ecosystem, UST, lost its peg and plunged the ecosystem into collapse, one of the events that marked the year we are leaving behind. The market cap of the stablecoin economy has lost just over $28 billion in 2022. So it’s been a pretty interesting year for stablecoin assets. Meanwhile, Binance’s stablecoin BUSD has tumbled roughly 23.3% last month. Thus, over $3 billion has been wiped out from the stablecoin economy in the past 23 days.
$3 billion evaporated from the stablecoin economy
cryptocoin.com As you follow, the market value of stablecoins continued to decline along with the market. Since January 2022, $28.08 billion has evaporated from the stablecoin economy. Archived data shows that the stablecoin economy was worth $167.08 billion on January 5, 2022. However, it has declined to $139.06 billion today. This means that it fell 16.77% compared to the first week of the year.
The stablecoin economy has not been this low in US dollar value since October 23, 2021. In January 2022, Tether (USDT) had a market cap of approximately $77.14 billion. Today, its value has dropped to $66.25 billion.
The value of USD Coin (USDC) 14 months ago was $42.74 billion. This week, USDC has a market cap of roughly $44.28 billion. On January 5, 2022, the market cap of BUSD was $14.28 billion. Also, the stablecoin of the Terra (LUNA) ecosystem, UST, had a market cap of approximately $10.19 billion. On December 28, 2022, the market cap of BUSD is higher at $17.16 billion. But the value of UST is currently down to $215 million. UST was one of many stablecoins that lost their peg by leaving the US dollar this year.
This month alone, the stablecoin economy has lost $3.08 billion. Thus, it fell from $142.07 billion to the current $138.99 billion. On December 5, 2022, BUSD had a market capitalization of approximately $22.08 billion, 22% higher than the current $17.16 billion. On January 5, 356 days ago, Makerdao’s DAI stablecoin had a market cap of approximately $9.07 billion, which is 43.55% higher than DAI’s current $5.12 billion. Beneath the stablecoin DAI are the dollar-pegged tokens Frax, Pax Dollar, True USD, USDD and Gemini Dollar.
These stablecoins also remind of the LUNA case!
Stablecoins that have fallen in a number of positions include Magic Internet Money, Liquidity USD, Fei USD and Neutrino USD. The once stable cryptocurrency Neutrino USD (USDN) dropped from $1 on November 7, 2022. The stablecoin is currently trading at $0.448 per unit. In addition, Flex USD (FLEXUSD) has also lost its $1 peg on June 20 this year. Therefore, it is currently trading at $0.25 per unit.
Another old stablecoin that lost its peg is HUSD, which fell from $1 on October 27, 2022. A single HUSD token is currently changing hands on December 28 at $0.14 per unit.
On December 5, 2022, stablecoins represented $60.74 billion of the $107.29 billion 24-hour trading volume recorded that day. This corresponds to 56.61% of all transactions. After 23 days, global trade volume is much lower at $37 billion, with stablecoins representing $29.92 billion, or roughly 80.86% of transactions recorded on December 28, 2022.