USD coin (USDC) has experienced a notable 4.9% decline in its market capitalization during the past month. The stablecoin, which is the second largest token in the stablecoin economy, also accounts for about 5% of the entire Bitcoin and cryptocurrency economy.
Data shows that other stablecoins have performed positively over the past 30 days. USDT, which is the largest stablecoin by market valuation and accounting for 6.761% of the Bitcoin and cryptocurrency economy, experienced a 0.7% increase in growth.
At the same time, Binance’s stablecoin, BUSD, is among the fastest growing. Its market valuation increased by 11.1%. Pax dollar (USDP) saw an even higher increase. Its current market valuation is 19.7% higher than what it was a month ago. Celo dollar, CUSD, also experienced a sizeable increase in market valuation as it grew by 7.1%.
However, USDC is not the only stablecoin to decline. Other stablecoins, like DAI, FRAX, and TUSD, also saw their market valuations decline in the past month.
Overall, data shows that the wider stablecoin market has stagnated over the past two months. This is part of a trend that started with the collapse of Terra’s UST and has been enhanced by the bear market.
Terra’s collapse in mid-May caused more than $35 billion in value to disappear from the stablecoin economy. Between then and July, the top stablecoins by market capitalization lost 10.66%, dropping from $171.37 billion to $153.09 billion. Since then, the stablecoin market has experienced little growth, hovering around $153 billion.
Despite market declines, stablecoins continue to play a crucial role in the Bitcoin and cryptocurrency economy. They still account for a huge share of global volume, with estimates of around 75% of the worldwide Bitcoin and cryptocurrency trade.