The crypto analytics platform – Santiment – estimated that the combined market capitalization of the six largest stablecoins (USDT, USDC, BUSD, DAI, TUSD, and USDP) has shown signs of revival during the past several days.
However, the figure has been on a significant downfall since Q1 last year when the prolonged crypto winter started intensifying.
- According to Santiment, the combined market cap of those assets has recently surpassed $121 billion, adding over $660 million in the last two weeks.
- This is a slight improvement compared to the overall decline registered in the past 18 months. For example, the combined cap of the largest stablecoins was approximately $165 billion in May 2022 (prior to the Terra collapse).
- Other events that prompted an additional decrease were the FTX meltdown in November last year and the US banking crisis this spring.
- The turmoil in the banking sector, more specifically, Circle’s multi-billion exposure to Silicon Valley Bank (SVB), severely affected the performance of USDC. The stablecoin’s market capitalization stood at over $44 billion (per CoinGecko) before the catastrophe, while as of the moment, it is approximately $26 billion.
- While the market cap of most of the aforementioned assets has been gradually dwindling in the past months, this is not the case with USDT.
- The leading stablecoin, issued by Tether, has considerably increased its dominance against its rivals. In addition, its market capitalization hit an all-time high of over $84.1 billion at the beginning of August (CoinGecko’s data).