Stablecoin Economy Sheds $28 Billion: Market Capitalization Plummets 16.77%

• The market capitalization of the entire stablecoin economy lost just over $28 billion in value since the start of 2022.
• More than $3 billion has been erased from the stablecoin economy in the last 23 days, with BUSD shedding roughly 23.3%.
• Tether (USDT) had a market capitalization of around $77.14 billion at the start of the year, and today it’s down to $66.25 billion.

In 2022, the stablecoin economy has seen a significant decline in value, losing over $28 billion since the start of the year. This has been largely driven by the erosion of the stablecoin economy’s market capitalization, which has seen a decrease of 16.77%. This has been a concerning development for many cryptocurrency investors, as the stability of these coins is essential in providing a reliable store of value in the digital asset space.

In particular, the market capitalization of tether (USDT) has seen a significant decrease, falling from $77.14 billion at the start of the year to $66.25 billion today. This has been accompanied by a drop in the market capitalization of other stablecoins, such as USD Coin (USDC), which has seen its market capitalization fall from $42.74 billion to $44.28 billion in the same period.

The situation has been exacerbated in recent weeks, with the stablecoin economy shedding more than $3 billion in value in the last 23 days. This has been driven by a sharp decline in the market capitalization of BUSD, which fell from around $22.08 billion on Dec 5, 2022 to $17.16 billion today. Furthermore, TerraUSD (UST) has seen its value obliterated, falling from $10.19 billion to just $215 million in the same period.

Overall, the decline of the stablecoin economy has been a cause for concern among investors. The stability of these coins is essential for providing a reliable store of value, and the erosion of their market capitalization could have long-term implications for the cryptocurrency space. As such, it is important for investors to remain vigilant and monitor the situation closely.