Arcane Research: the supply of stablecoins has fallen by almost 19%
The total supply of stablecoins worldwide decreased by 18.8% at the end of the second quarter of 2022, as the stock and crypto asset markets are experiencing periods of instability due to rising inflation and other macroeconomic reasons. The supply of stablecoins fell in the second quarter
Digital tokens, called stablecoins, are tied to fiat money, such as the dollar. These currencies are supported by a combination of monetary reserves, commercial assets and other physical assets and use blockchain technology.
This week Arcane Research released a document detailing the supply structure. In its analysis, Arcane examined information about the offer of popular tokens such as USDT, USDC, BUSD, DAI, MIM and USTC.
The data showed that in May 2022, the total supply exceeded $ 180 billion. By the end of the second quarter, this amount had fallen to $151.3 billion, indicating an 18.8% decrease in global supply.
The report claims that the significant reduction, which is estimated at $35.1 billion, is the largest quarterly drop in supply in the history of stablecoins. This is happening at a time when the cryptocurrency market is experiencing difficulties, and the prices of market leaders such as bitcoin have plummeted.
USDC to the top
In particular, the Arcane report predicts USDC growth. In fact, the analysis predicted that sometime in October 2022, the market value of the USDC will increase by about USDT.
According to Arcane, Tether (USDT) was the largest stable coin on the market, taking full advantage of the trailblazer. However, in November 2021, it decreased by 50%. As the market capitalization of USDT dropped from $78 billion to $66.3 billion in 2022, the decline continued.
The market capitalization of the USDC is $ 54 billion. Source: TradingView
The two leading stablecoins in cryptocurrency at the time of publication are USDT and USDC. The market capitalization of both tokens is more than $ 50 billion. Binance USD (BUSD), the closest competitor, ranks third with a market value of approximately $17.83 billion.
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