Over the past 11 days, over 7 billion USDC stablecoins have been taken out of circulation, with most redemptions occurring following the USDC break-up event on March 11, 2023. Additionally, since March 6, a total of 439.48 million BUSD stablecoins have been redeemed.
Stablecoin Depegging Event Triggers Billions in Redemptions
The stablecoin landscape has undergone significant changes this month after a stablecoin unpeg event took place on March 11th. Meanwhile, USDC fell to a low of $0.877 per coin, and half a dozen other stablecoins also dropped from US dollar value on the same day. However, USDC and other stablecoins have since been re-indexed, and the Circle stablecoin is trading at $1 on various centralized trading platforms on Friday. March 6, approximately 43.89 billion USDC was in circulation and 11 days later, 7,089,389,744 USDC had been exchanged.
Since March 17, 2023, metric show that over the past 30 days, the number of USDC in circulation has decreased by 10.2%. According to stablecoin market data from coincko.com, there are currently approximately 36.80 billion USDC stablecoins in circulation. In the unpeg event, USDC doubled today’s volume to $6,328,716,602 in USDC global trade volume in the past 24 hours. Over the past day, the 24-hour trading volume of BUSD has overtaken USDC, which holds the third-largest stablecoin trading volume.
Friday afternoon (ET) data showed that BUSD had a 24-hour global trading volume of $8,289,546,285 across various exchanges. A snapshot archive.org from 11 days ago, March 6, shows that 439,484,014 BUSD was redeemed. At that time, around 8,689,408,012 BUSD were in circulation, while today the number has dropped to 8,249,923,998. According to Nansen reserve proof data, Binance holds 7.42 billion BUSD. Stablecoin market data from Coingecko.com shows that over the past 30 days, the number of BUSD in circulation has decreased by 46.3%.
While 7.528 billion USDC and BUSD have been withdrawn from the stablecoin economy, tether (USDT), the largest stablecoin by market cap, saw an 8.7% increase in the number of coins in circulation. Tether now has an aggregate market valuation of around $75.29 billion, with 75.17 billion USDT in circulation. Additionally, on Friday, Tether’s $80.38 billion global trade volume surpassed all other coins in the entire crypto-economy in terms of 24-hour settled transactions. BUSD and USDC hold the second and third largest volumes of stablecoins, respectively.
What do you think the future holds for stablecoins after the recent depegging event? Will they regain their stability or will their value continue to fluctuate? Share your opinion in the comments below.
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