The total supply of stablecoins decreased globally by 18.8% at the end of the second quarter of 2022 as the equities markets and risky assets experience volatile times due to rising inflation and other macro reasons.<\/p>\n
Stabelcoins Supply Falls In The Second Quarter<\/p>\n
Digital tokens called stablecoins are anchored to fiat money like the dollar. These currencies are supported by a combination of cash reserves, commercial holdings, and other physical assets and make use of blockchain technology.<\/p>\n
This week, Arcane Research released a paper that detailed the supply pattern. In their analysis, Arcane looked at supply information for popular tokens like USDT, USDC, BUSD, DAI, MIM, and USTC.<\/p>\n\n
Data indicated that the overall supply was above $180 billion in May 2022. By the end of the second quarter, that amount had dropped to $151.3 billion, indicating an 18.8% decline in worldwide supply.<\/p>\n
The report claims that the significant reduction, which is estimated to be worth $35.1 billion, is the greatest quarterly supply drop in stablecoins history. This occurs at a time when the cryptocurrency market is struggling and the prices of market leaders like Bitcoin have fallen dramatically.<\/p>\n
The crypto ecosystem entered the seven seas in 2022, and stablecoins were not left unphased.<\/p>\n
To understand how stablecoins navigated the stormy market conditions and whether Arcane\u2019s stablecoin predictions for 2022 stand the test of time, click below:https:\/\/t.co\/uL5tTWFQlT<\/p>\n
\u2014 Arcane Research (@ArcaneResearch) July 26, 2022<\/p>\n
Suggested Reading |\u00a0TRON Bulls Are Back To Pump Some Energy Into TRX Coin<\/p>\n
USDC To The Top<\/p>\n
In particular, Arcane\u2019s report anticipates a rise of USDC to the top. In fact, the analysis predicted that somewhere in October 2022, the market value of USDC will increase by around USDT.<\/p>\n
According to Arcane, Tether (USDT) has been the market\u2019s largest stablecoin, fully utilizing the first mover advantage. However, in November 2021, it decreased by 50%. As the market capitalization of USDT fell from $78 billion to $66.3 billion in 2022, the fall continued.<\/p>\n\n
USDC market cap at $54 Billion. Source: TradingView<\/p>\n
The top two stablecoins in cryptocurrency at the time of publication are USDT and USDC. The market capitalization of both tokens is over $50 billion. Binance USD (BUSD), the nearest rival, comes in third with a market worth of roughly $17.83 billion.<\/p>\n
Related Reading |\u00a0Ethereum Merge: How ETHBTC Could Hint At A Return Of Risk Appetite<\/p>\n
Featured image from iStock Photo, charts from TradingView.com, Arane research<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
The total supply of stablecoins decreased globally by 18.8% at the end of the second quarter of 2022 as the equities markets and risky assets experience volatile times due to rising inflation and other macro reasons.<\/p>\n
Stabelcoins Supply Falls In The Second Quarter<\/p>\n
Digital tokens called stablecoins are anchored to fiat money like the dollar. These currencies are supported by a combination of cash reserves, commercial holdings, and other physical assets and make use of blockchain technology.<\/p>\n
This week, Arcane Research released a paper that detailed the supply pattern. In their analysis, Arcane looked at supply information for popular tokens like USDT, USDC, BUSD, DAI, MIM, and USTC.<\/p>\n
Data indicated that the overall supply was above $180 billion in May 2022. By the end of the second quarter, that amount had dropped to $151.3 billion, indicating an 18.8% decline in worldwide supply.<\/p>\n
The report claims that the significant reduction, which is estimated to be worth $35.1 billion, is the greatest quarterly supply drop in stablecoins history. This occurs at a time when the cryptocurrency market is struggling and the prices of market leaders like Bitcoin have fallen dramatically.<\/p>\n
The crypto ecosystem entered the seven seas in 2022, and stablecoins were not left unphased.<\/p>\n
To understand how stablecoins navigated the stormy market conditions and whether Arcane\u2019s stablecoin predictions for 2022 stand the test of time, click below:https:\/\/t.co\/uL5tTWFQlT<\/p>\n
\u2014 Arcane Research (@ArcaneResearch) July 26, 2022<\/p>\n
Suggested Reading |\u00a0TRON Bulls Are Back To Pump Some Energy Into TRX Coin<\/p>\n
USDC To The Top<\/p>\n
In particular, Arcane\u2019s report anticipates a rise of USDC to the top. In fact, the analysis predicted that somewhere in October 2022, the market value of USDC will increase by around USDT.<\/p>\n
According to Arcane, Tether (USDT) has been the market\u2019s largest stablecoin, fully utilizing the first mover advantage. However, in November 2021, it decreased by 50%. As the market capitalization of USDT fell from $78 billion to $66.3 billion in 2022, the fall continued.<\/p>\n
USDC market cap at $54 Billion. Source: TradingView<\/p>\n
The top two stablecoins in cryptocurrency at the time of publication are USDT and USDC. The market capitalization of both tokens is over $50 billion. Binance USD (BUSD), the nearest rival, comes in third with a market worth of roughly $17.83 billion.<\/p>\n
Related Reading |\u00a0Ethereum Merge: How ETHBTC Could Hint At A Return Of Risk Appetite<\/p>\n
Featured image from iStock Photo, charts from TradingView.com, Arane research<\/p>\n
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