The stablecoin landscape has been stagnant for the last two months, barely exceeding $123 billion as we approach the third week of October. Even though fiat-pegged token trading saw a spike this week, on October 13, stablecoin transactions made up 22.96% of the global crypto economy’s trade volume. Just a day earlier, they constituted 74% of all trades.
Turbulent Times Ahead? Stablecoin Valuations and Trade Volumes Fluctuate
Over the past month, the market of fiat-pegged tokens has been challenging. Tether (USDT) experienced a modest 0.5% surge in its supply. Contrastingly, usd coin (USDC) faced a 4.3% cut in its stockpile. DAI, the third-largest stablecoin by market cap, had 1.3% sliced off, whereas trueusd (TUSD) enjoyed a 6.5% uptick. Meanwhile, BUSD, ranking fifth, saw a significant 15.5% reduction in its supply.
Currently, BUSD’s market capitalization teeters around $2.13 billion, flirting with the possibility of dipping below $2 billion. Over the past month, Tron’s USDD remained unchanged, while FRAX enjoyed a subtle 0.5% growth. Pax dollar (USDP) wasn’t so fortunate, shedding 7.2% of its supply, and the newcomer, first digital usd (FDUSD), witnessed an 18.7% supply spike. As of October 13, 2023, Paypal’s fresh-off-the-shelf stablecoin stands as the 13th largest, boasting a circulation of 119 million.
On the morning of October 13, stablecoins made up 22.96% of the $62 billion global trade volume, a stark contrast to the 74% seen on October 12. That Thursday evening, the stablecoin economy momentarily dipped beneath the $123 billion mark, with the global trade volume plummeting to $34.13 billion. In other developments, Tether announced a leadership shift this week: Paolo Ardoino, previously the Chief Technology Officer, will assume the role of CEO come December, with the former CEO, Jean-Louis van der Velde, transitioning to an advisory position.
Moreover, a relatively obscure stablecoin, USDR, took a hit this week, now trading at half its former $1 parity. Managed by Tangibledao, this once-stable coin lost its parity on October 11 and hasn’t rebounded. Although the team vowed to address the issue via a post on social media platform X, the post remains private, preventing any public responses. USDR has now been added to the growing roster of fiat-pegged tokens that have lost their dollar pegs.
What’s your perspective on this week’s stablecoin developments and the associated news? Share your thoughts and opinions about this subject in the comments section below.
source https://news.bitcoin.com/stablecoin-market-navigates-shifting-sands-as-tether-announces-new-ceo-and-usdr-depegs/
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