Stablecoin market on 15th decline MoM reaches lowest market cap since Sep 2021

Rick Steves

The drop in trading volume comes with major crypto assets staying range-bound and failing to break key support and resistance levels.​

In June, the total market capitalization of stablecoins fell 0.57% to $128bn (up to 19th June), the lowest stablecoins market cap since September 2021 and the fifteenth consecutive month of decline, according to CCData’s Stablecoins & CBDCs Report.

The report offers insight into the latest developments in the stablecoin and CBDC sector, focusing on analysis that relates to market capitalization, trading volume, peg deviation, and more.

CCData is an FCA-authorised and regulated global leader in digital asset data, providing institutional and retail investors with real-time and historical data and index solutions.

Fiat trading pairs down due to banking partners

Key takeaways of the report include:
  • In June, the total market capitalisation of stablecoins fell 0.57% to $128bn (up to 19th June), the lowest stablecoins market cap since September 2021 and the fifteenth consecutive month of decline. ​Although the total stablecoin market capitalisation declined, market dominance rose to 11.8%.​
  • Stablecoin trading volumes fell 10.0% to $414bn in May, recording the lowest monthly trading volume by stablecoins on centralised exchanges since December 2022. The drop in trading volume comes with major crypto assets staying range-bound and failing to break key support and resistance levels.​
  • In June, the market cap of USDT rose 0.03% to $83.2bn, after momentarily breaching its previous all-time high market cap of $83.3bn. USDT’s stablecoin market share also rose to 64.6% from 64.3% in May.​ The stablecoin briefly depegged on June 15th after an imbalance in the Curve 3pool, falling as low as $0.9878.​
  • The market share of fiat trading pairs compared to the volumes of stablecoin trading pairs dropped to 18.8% in June after the trading volume of fiat pairs fell 33.9% to $99.7bn.​ Fiat trading pairs have been on a downward trend as a result of issues faced by the exchanges with regard to their banking partners.

Stablecoin market dominance is currently at 11.8%

In June, the total market capitalisation of stablecoins fell 0.57% to $128bn, the lowest stablecoins market cap since September 2021. This is the fifteenth consecutive month of decline in stablecoins market capitalisation.

Stablecoin market dominance is currently at 11.8%, rising from 11.0% in May. This is currently below its all-time high of 16.6% recorded in December 2022.


Stablecoin Trading Volume Drops to New Yearly Lows
In May, stablecoin trading volumes dropped 10.0% to $414bn, recording the lowest volume since December 2022. USDT trading volume fell by 29.9% to $293bn, recording the lowest trading volume for the stablecoin since January 2020.

USDT dominance by trading volume fell for the second consecutive month in May to 76.9%. June data (as of the 19th) shows that USDT trading dominance is on trend to record the lowest market share since January 2023, currently at 72.4%.​


USDT Depegs Momentarily Following Curve 3pool Imbalance​
On June 15th, the price of USDT fell as low as $0.9878, following an imbalance in Curve’s 3pool, which saw Tether’s weightage rise above 70%, outweighing USDC and DAI. The rise in the weightage of a stablecoin usually indicates heavy selling of the asset.​

On-chain analysis shows that the imbalance was further expedited by a whale addressed named CZSamSun. This address borrowed $31.5mn USDT in Aave and swapped it for USDC.  However, the stablecoin didn’t deviate from its peg for long, regaining it later in the day. ​


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