Stablecoin Market Capitalization Shrinks IDR 108.61 Trillion in 2023

Liputan6.com, Jakarta – Since the start of 2023, the crypto industry has surged 41.77 percent and recorded a market capitalization of USD 1.17 trillion. However, amid this growth, stablecoins experienced a correction of USD 7.3 billion in a span of 140 days.

Quoted from bitcoin.comwritten Monday (22/5/2023), according to the latest data, the stablecoin market capitalization value has decreased by USD 7.3 billion or around Rp. 108.61 trillion (assuming an exchange rate of Rp. 14,878 per US dollar) in 2023. On January 6, 2023 , the market cap of stablecoins is at USD 138.12 billion.

However, currently the stablecoin market capitalization is shrinking to USD 130.79 billion. This is as many stablecoin projects have experienced substantial redemption in the last four months, with USDC losing more than USD 14 billion. Likewise BUSD has experienced a redemption exceeding USD 11 billion since the first week of January. Meanwhile, DAI is facing redemption of USD 361 million.

While USDC and BUSD slumped by USD 7.3 billion in 2023, several other stablecoin projects managed to offset these losses with gains. One of them is TUSD, which started the year with a market capitalization of USD 846.57 million. Currently, the stablecoin has a market valuation of USD 2.04 billion, up 140.97 percent.

Likewise tether (USDT) which recorded a significant increase in market capitalization. In the first week of January, USDT’s market capitalization stood at USD 66.29 billion, but has since jumped 25 percent, reaching USD 89.25 billion. On January 6, 2023, the stablecoin recorded a trading volume of USD 27.11 billion in 24 hours. However, on May 21, 2023, the market volume of US dollar-pegged tokens plummeted to USD 10.77 billion.

Trading volumes while visibly smaller, the USD 10.77 billion worth of stablecoins still represent a significant portion, accounting for 57.9 percent of the total 24-hour trading volume in cryptocurrencies.

On the other hand, the volume of tokens pegged in US dollars reached USD 27.11 billion, accounting for 81.36 percent of the global trading volume on January 6, 2023 of the 12,775 crypto assets listed on coingecko.com.