The decline trend in the total supply and total market value of stablecoins did not slow down in September. According to CCData, the total market value of stablecoins fell to the lowest levels in the past 2 years in September, reaching $123.8 billion. In addition to the decrease in total market value, significant decreases also occurred in stablecoin volumes on cryptocurrency exchanges.
The Decline in Total Market Value of Stablecoins Continues
Stablecoins, which are cryptocurrencies pegged to fiat currencies such as the US Dollar or Euro, have suffered a significant blow in recent times. In particular, the TerraUSD crash in May 2022 led to a major drop in the total market value of stablecoins.
However, this decline in market value did not slow down after the TerraUSD crash. The decline in total market value and trading volumes continued in recent months.
USDC and Binance USD (BUSD) were particularly affected during this period. With the decrease in BUSD and USDC, the downward trend in total market value gained momentum. During this process, the trading volume of stablecoins on cryptocurrency exchanges, especially Coinbase, also recorded significant decreases.
With this ongoing downward trend, the total market value of stablecoins fell to the lowest levels in the past 2 years, reaching $123.8 billion in September, according to CCData. This number was at $137.9 billion in August.
Decrease in Trading Volumes
With the decline in the total market value to $123.8 billion in September, the lowest level in the past 2 years was recorded. This number is the lowest level since August 2021.
In addition to the total market value, significant decreases were also observed in the total stablecoin trading volumes recorded on centralized cryptocurrency exchanges. According to CCData, Coinbase’s total stablecoin volume fell by 28.4% to below $332 billion in September. The stablecoin volume recorded on Coinbase in September was also the lowest monthly volume since July 2020.
