May became the 14th consecutive month that stablecoin capitalization has dropped.
While the total capitalization of the stablecoins decreases, that of USDT and TUSD increases.
The total stablecoin market capitalization has been slowing down for just over a year. It precisely reached its all-time high in April 2022 and is currently at levels not seen since 2021.
In May 2023, stablecoin capitalization fell to $130 billion, its lowest since September 2021. This can be seen in the following graph provided by the CCDATA market data and analysis company.
This way, May became the 14th consecutive month that stablecoin capitalization declined. This comes as this sector accounts for 11.1% of the total crypto asset market, which is below its all-time high of 16.6% dominance in December 2022.
This scenario occurs mainly due to the drop in capitalization of the stablecoins USD Coin (USDC) and Binance USD (BUSD). These fell for the sixth consecutive month, precisely 3.55% to USD 29.3 billion and 11.9% to USD 5.4 billion respectively.
However, it should be noted that, while the total capitalization of the stablecoins is going down, that of some of them is going up. Among these, the most used stands out, Tether (USDT), which is close to its all-time high of USD 83.7 billion. In addition, TrueUSD (TUSD) was also highlighted for reaching $2 billion, its highest peak ever.
The increase in the capitalization of TUSD to its all-time high followed an initiative by Binance that fueled its demand. As reported by CriptoNoticias, this cryptocurrency exchange, which is the one with the largest global trade, left the trading of this stablecoin without fees after reactivating them for most of its peers.
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