The stablecoin market has seen its market value drop for the 16th month in a row. That figure fell 0.82% to $127 billion in July, the lowest level since August 2021, according to crypto analytics platform CCData.
Market Cap Dominance of Stablecoins Continues to Fall
The market cap dominance of stablecoins also fell from 10.5% to 10.3% in July. On a more positive note, however, stablecoin trading volume increased more than 16% to $483 billion in June.
This was the first increase in monthly volumes since March.
The report noted that the trend of increasing trading volume may be due to market volatility triggered by lawsuits filed by the United States Securities and Exchange Commission (SEC) against crypto giants Coinbase and Binance.
The surge in trading activity following spot Bitcoin ETF filings by multiple TradFi companies such as BlackRock and WisdomTree could be another factor. “As of July 17, only $219 billion had been traded.
Volumes are on track to record lower monthly volume as key assets like Bitcoin and Ethereum struggle to break the key resistance levels of $32,000 and $2,000 respectively.”
July witnessed the dominance of USDT, which reached an all-time high market cap of $83.8 billion and accounts for over 65% of all stablecoins by market cap.
During the same period, the market capitalization of USDC and BUSD fell significantly to $26.9 billion and $3.96 billion, down 3.01% and 4.57%, respectively.
This trend marked the seventh consecutive month of decline in the Circle-backed stablecoin, which had previously seen a dip in investor confidence as a result of the banking turmoil. This is also the lowest market cap for USDC since June 2021.
*Not investment advice.