The market supply of stablecoins has been shrinking for the past 16 months.
According to CCData, the capitalization of digital currencies with collateral is now at its lowest level since August 2021. In July, it fell another roughly 0.82% to $127 billion.
Stablecoin’s dominance in the crypto market decreased from 10.5% to 10.3%. Analysts recorded the most massive decline in the supply of such tokens since 2020.
Pax Dollar (USDP) suffered the biggest losses. Its capitalization collapsed by more than 43% to $563 million – the lowest level since December 2020.
The CCData report notes that Tether (USDT)’s market share of dollar-backed digital currencies increased to 65.9%. USDT’s July 21 capitalization stands at just over $83.8 billion.
USD Coin (USDC) and Binance USD (BUSD) supply fell about 4% to $26.9 billion and $3.96 billion, respectively. USDC capitalization fell for the seventh consecutive month, now at its lowest since June 20221.
In contrast, trading volumes rose 16.6% to $483 billion in June.
The researchers noted that trader activity in the stablecoin market increased for the first time since March 2023.
Capitalization of DAI token increased by 0.43% to $7.52 billion in July