Stablecoin market cap down 35% 18 months after Terra collapse
The overall stablecoin market has witnessed a staggering 35% dip in the past year and a half. Terraform’s collapse last year and the subsequent fall of its native Terra USD (UST) stablecoin triggered a chain reaction, which caused the valuation of the stablecoin sector to shrink from $189 billion in May 2022 to a mere $123 billion presently, per data from DefiLlama. Stablecoin Diversity & Market Risks As of now, the cumulative market cap of #stablecoins stands at a staggering ~$123 billion according to @coingecko and @DefiLlama. Dive with us deeper pic.twitter.com/QEZSgM0XFb — GSU | Protocol (️,) (@GSUcoin) October 4, 2023 According to analysts, the daily trading volumes of stablecoins have also been on a downward trajectory, nosediving from a peak of $150–300 billion to a mere $50 billion. Some, like Bluechip co-founder Vaidya Pallasena, attribute this dip to various factors, including the surge in U.S. Treasury yields since mid-2022, which made it difficult t...