Stablecoin Market Navigates Tumultuous Year

Stablecoin Market Navigates Tumultuous Year



The stablecoin market has seen a decline of 35% over the past 18 months. This downturn can be attributed to the fall of Terraform and its native stablecoin Terra USD (UST) which had a domino effect on the sector. As a result the market value dropped from $189 billion in May 2022 to its value of $123 billion according to DefiLlama statistics. Additionally daily trading volumes for stablecoins have drastically decreased from their high range of $150 300 billion to just $50 billion.



Experts like Vaidya Pallasena from Bluechip and others believe that various factors contributed to this decline. One factor is the increase in U.S. Treasury yields since mid 2022 which challenges the rationale for holding stablecoins due to opportunity costs. On the hand Nic Carter from Castle Island Ventures attributes it to traditional finance rates


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#Blockchain, #Cryptocurrency, #Cryptomarket, #Cryptonewstoday, #News, #Stablecoin, #USDC, #USDT

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