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A GRAPH SHOWS THAT TOTAL SUPPLY OF USDC AND BUSD DROPS

A GRAPH SHOWS THAT TOTAL SUPPLY OF USDC AND BUSD DROPS 

The total amount of stablecoins declined sharply in history during Q2 2022, and the stability of stablecoin increased due to "temporary cash shortages and concerns about shortages that were not in place by the year 2020," according to data analysis company Coinmetrics.


CoinMetrics head of research and development Lucas Nuzzi highlighted the details on Twitter on June 16, with a graph showing the total number of stable currencies since January 2020.


“22Q2 is the first time in the history of currencies that Total Supply has fallen. Even if we do not include UST, more than 10B is spent * directly on the wealth * of the major producers. ”

The list included DAI, USDT, OMNI and TRON, SAI, USDK, PAX. While USDC Circle and BUSD Binance are combined in a separate graph. Terra's actual version of UST was not included in the graph.



Nuzzi noted that Tether saw the biggest rescue for all stable stablecoin issuers, with $ 7 billion of the total USDT removed from the board in April and May, and possibly due to fewer actions, than any significant market-wide movement .


"The severity of that decline suggests that one organization, or small group, was behind you," he said.


The inclusion of the Terra eco-system including its native LUNA token and UST stablecoin in May coincided with Tether’s USDT de-pegging in the U.S. dollar. about 5%. As a result, approximately 7 million USDT were redeemed as major players looked to exit the market and avoid any other potential risks.


Another influential project was DAI's DADAO, which found that 40% of its supply was discontinued due to "the biggest fundraising event in its history."


USDC and BUSD are also included in a separate graph, and show a significant decline in the $ 5 billion supply in May, however, both have resurfaced and are about to return to their regular high levels of nearly 65 billion. and 48 billion per pop.


The different market conditions of 2022 provide a possible explanation for why stablecoin users risked the table a few weeks ago.


To date, the crypto industry has seen the Terra eco-system cause an estimated $ 40 billion crash, while Celsius lending company and Three Arrows Capital have also been struggling to avoid paying taxes for part of the reduction. reported, exposure to Terra, commodity prices and business models that may not be able to sustain themselves.


Tether, which was also presented to Celsius with an equity investment of $ 10 million by 2020 and a $ 1 billion loan to the company last year, issued a statement on Monday noting that lower Celsius token prices and liquidity problems would be "no effect" on its archives.

Source: cointelegraphy




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