According to a new report by CCData, the stablecoin industry, which provides an important link between traditional and cryptocurrency markets, has fallen again in terms of total market value.
The report also reveals that Tether, the main stablecoin issuer, has lost some of its market share to its competitors.
According to CCData, the total market capitalization of all stablecoins fell 0.4% in August to approximately $125 billion, marking the 17th consecutive month of contraction. The report attributes this trend to lower transaction volumes and declining activity in the decentralized finance (DeFi) space, which relies heavily on stablecoins for lending, borrowing and exchange.
The market value of Tether, the largest and most widely used stablecoin, fell 1.2% in August to $82.9 billion.
“While it is too early to tell whether the market cap of stablecoins has finally bottomed out, there are encouraging signs pointing to some capital inflow,” said Jacob Joseph, research analyst at CCData.
*This is not investment advice.