After a Handful of Tokens Lost Their $1 Peg, the Stablecoin Economy Shed $28 Billion in 2022

2022 has been an interesting year for stablecoin assets as the market capitalization of the whole stablecoin economy lost just over $28 billion in esteem. Moreover, more than $3 billion has been erased from the stablecoin economy during the last 23 days as BUSD shed roughly 23.3% during the last month.

Over $3 Billion in USD Worth Has Been Erased From the Stablecoin Economy in 23 Days

Since January, the market valuation of stable coins has continued to slide. 2022, $28.08 billion in U.S. dollar esteem has left the stablecoin economy. Documented information indicates that the stablecoin economy was esteemed at $167.08 billion on Jan. 5, 2022, and today it’s esteemed at $139.06 billion or 16.77% lower than the first seven day stretch of the year.

The stablecoin economy has not been this low in U.S. dollar esteem since Oct. 23, 2021, or around 14 months ago. In Jan. 2022, tie (USDT) had a market capitalization of around $77.14 billion, and today it’s down to $66.25 billion.

Usd coin’s (USDC) valuation 14 months ago was $42.74 billion and this week USDC’s market cap is roughly $44.28 billion. BUSD’s market cap was $14.28 billion on Jan. 5, 2022, and terrausd’s (UST) market valuation was roughly $10.19 billion.

On Dec. 28, 2022, BUSD’s market cap is higher at $17.16 billion, but UST’s valuation was obliterated down to the current $215 million. UST was one of many stablecoins that depegged from the U.S. dollar this year.

This month alone the stablecoin economy shed $3.08 billion in esteem as it slid from $142.07 billion to the current $138.99 billion. On Dec. 5, 2022, BUSD had a market cap of around $22.08 billion which is more than 22% higher than the current $17.16 billion.

356 days ago on Jan. 5, Makerdao’s DAI stablecoin had a market valuation of around $9.07 billion, which is 43.55% higher than DAI’s current $5.12 billion worth. Below the stablecoin DAI are the dollar-fixed tokens frax, pax dollar, genuine usd, usdd, and gemini dollar.

In Addition to Terrausd, Neutrino USD, HUSD, and FLEXUSD Depegged From Their $1 Equality

Stablecoins that have been bumped down a number of positions incorporate dollar-fixed coins like magic internet money, liquity usd, fei usd, and neutrino usd. The once-stable coin neutrino usd (USDN) is as of now exchanging for $0.448 per unit in the wake of depegging from the $1 equality on Nov. 7, 2022.

Another former stablecoin that also lost its stake is HUSD, which depegged from the $1 equality on Oct. 27, 2022. A single HUSD token is at present exchanging hands for $0.14 per unit on Dec. 28.

Furthermore, the once-stable coin flex usd (FLEXUSD) also lost its dollar stake this year. FLEXUSD is now exchanging for $0.25 per unit as it depegged from the $1 equality on June 20, 2022.

On Dec. 5, 2022, stablecoins represented $60.74 billion of the $107.29 billion out of 24-hour exchange volume recorded that day, which equates to 56.61% of all trades. after 23 days, the global exchange volume is a lot of lower at $37 billion, while stablecoins represent $29.92 billion or roughly 80.86% of the trades recorded on Dec. 28, 2022.