Stablecoins Market Cap Plummets to Lowest in 2 Years
According to DeFiLlama, the market supply of stablecoins has been on the decline since the end of 2022, reaching a two-year low of $123.8 billion.
This is the lowest level since September 2021. The lack of investment interest in stablecoins is indicative of a reluctance among investors to enter the digital currency market, particularly with currencies like Bitcoin (BTC) and Ethereum (ETH).
In recent months, only two stablecoins, Tether (USDT) and Dai, have experienced moderate growth, as reported by analysts at Binance Research.
Tether’s capitalization reached a new high last summer at $84 billion. Tether currently dominates the market for dollar-backed digital currencies, with a 67.2% market share.
Its supply has increased by $334.7 million in the past month, reaching a total of $83.5 billion. Last week, USDT’s exchange balances grew from 17.6% to 24.7% of its total supply, according to Santiment.
The capitalization of Dai has also seen a slight increase of 5.4% or $283.4 million, reaching $5.347 billion in the past month.
