Darkfost
Stablecoin market cap hits its lowest level in over a year
The total stablecoin market cap has just reached its lowest level in over a year. Between April and today, the stablecoin market cap went from about $280B to $263B, a loss of $17B, equivalent to a -6% change in 6 months. On Binance, which still accounts for 70% of the stablecoin supply on exchanges, the market cap (90-DMA) shows -20%, with a decline from $51B to $34B following the hack of the platform, during which about $3B of stablecoins were extracted. Still, the trend there is just as clear. For over a year, the market cap held on the platform has kept decreasing, just like the total stablecoin market cap. This correlation is primarily explained by a lack of demand and incoming liquidity in the market. It's fair to say that with the recent geopolitical and economic events, but above all the many exploits across the crypto ecosystem, investors may see too much risk in exposing themselves to it. It is becoming urgent to see liquidity return to the crypto market, in order to prevent the positive trend of recent months from reversing and pushing the market back into gloom and negativity.