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Uncategorized

Stablecoin Market Now Faces Decline Despite Crypto Rebound

September 19, 2023 - Around 2 mins mins to read

Key Points:

  • The stablecoin market faces an 18-month decline, down 10% to $124.4 billion.
  • Tether’s popularity in emerging markets keeps it strong at an $82.9 billion market cap.
  • USD Coin drops 53% from its peak, banking crisis uncertainty lingers, and stablecoin issuers seek new opportunities.
The stablecoin market, a pivotal part of the cryptocurrency ecosystem, is witnessing an 18-month-long decline in market value, according to research firm CCData, as reported by Reuters. Despite a broader crypto market rebound since the lows of 2022, stablecoins have been facing headwinds.
Stablecoin Market Now Faces Decline Despite Crypto Rebound

As of September 14, the total market capitalization of stablecoins has dwindled by nearly a tenth this year, now standing at approximately $124.4 billion (around $123.7 billion presently).

Tether (USDT), the leading stablecoin, experienced a peak market capitalization of $83.8 billion in July, but it has since retreated to around $82.9 billion. Paolo Ardoino, Tether’s Chief Technology Officer, attributes USDT’s resilience to its popularity in specific regions, especially emerging markets in Central and South America and Central Asia.

On the other hand, USD Coin (USDC) has seen a more significant decline, with its market capitalization dropping by over 53% from its all-time high in June of the previous year, currently hovering above $26 billion. Dante Disparte, Circle’s Chief Strategy Officer, suggested that the collapse of regional banks earlier this year has contributed to the uncertainty surrounding USDC.

Stablecoin issuers are also exploring new avenues for product development. PayPal recently introduced PYUSD, highlighting its potential for global payments. However, PYUSD’s adoption seems to be in its early stages, with Paxos Trust, the issuer behind PayPal’s stablecoin, holding $45.3 million in assets backing PYUSD as of last month.

Despite challenges and market corrections, stablecoin providers are actively seeking ways to maintain their relevance and drive adoption in an ever-evolving crypto landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Circle

PayPal

PYUSD

Stablecoin market

Tether

USDC

USDT

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Uncategorized

Stablecoin Market Now Faces Decline Despite Crypto Rebound

Key Points:

  • The stablecoin market faces an 18-month decline, down 10% to $124.4 billion.
  • Tether’s popularity in emerging markets keeps it strong at an $82.9 billion market cap.
  • USD Coin drops 53% from its peak, banking crisis uncertainty lingers, and stablecoin issuers seek new opportunities.
The stablecoin market, a pivotal part of the cryptocurrency ecosystem, is witnessing an 18-month-long decline in market value, according to research firm CCData, as reported by Reuters. Despite a broader crypto market rebound since the lows of 2022, stablecoins have been facing headwinds.
Stablecoin Market Now Faces Decline Despite Crypto Rebound

As of September 14, the total market capitalization of stablecoins has dwindled by nearly a tenth this year, now standing at approximately $124.4 billion (around $123.7 billion presently).

Tether (USDT), the leading stablecoin, experienced a peak market capitalization of $83.8 billion in July, but it has since retreated to around $82.9 billion. Paolo Ardoino, Tether’s Chief Technology Officer, attributes USDT’s resilience to its popularity in specific regions, especially emerging markets in Central and South America and Central Asia.

On the other hand, USD Coin (USDC) has seen a more significant decline, with its market capitalization dropping by over 53% from its all-time high in June of the previous year, currently hovering above $26 billion. Dante Disparte, Circle’s Chief Strategy Officer, suggested that the collapse of regional banks earlier this year has contributed to the uncertainty surrounding USDC.

Stablecoin issuers are also exploring new avenues for product development. PayPal recently introduced PYUSD, highlighting its potential for global payments. However, PYUSD’s adoption seems to be in its early stages, with Paxos Trust, the issuer behind PayPal’s stablecoin, holding $45.3 million in assets backing PYUSD as of last month.

Despite challenges and market corrections, stablecoin providers are actively seeking ways to maintain their relevance and drive adoption in an ever-evolving crypto landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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