Global total stablecoin supply saw a drawdown at the end of Q2 2022 by some 18.8% as the equity markets and risk assets face turbulent periods due to rising inflation and other macro factors.
Stablecoins are digital tokens to fiat currencies like the U.S. dollar. Such tokens leverage blockchain technology and are backed by a mix of cash reserves, commercial holdings, and other real-world assets.
The supply pattern was revealed in a report published by Arcane Research this week. Arcane’s report studied supply data for major tokens like USDT, USDC, BUSD, DAI, MIM, USTC, and others.
Data showed that around May 2022, the total supply was north of $180 billion. That number fell to $151.3 billion by end of the second quarter and signaled an 18.8% drop in global supply.
The hefty drop is worth around $35.1 billion and according to the report, marks the largest quarterly supply drop in stablecoin history. This comes at a time when crypto markets are in a slump and market leaders like Bitcoin have experienced massive drops in asset prices.
The crypto ecosystem entered the seven seas in 2022, and stablecoins were not left unphased.
To understand how stablecoins navigated the stormy market conditions and whether Arcane's stablecoin predictions for 2022 stand the test of time, click below:https://t.co/uL5tTWFQlT
— Arcane Research (@ArcaneResearch) July 26, 2022
Circle’s USDC Poised To Surpass Tether’s USDT In Stablecoin Market Value
Notably, Arcane’s report expects a leap from USDC to the top. Indeed, the report said that USDC will climb about in market value sometime in October 2022.
At press time, USDT and are the top two stablecoins in cryptocurrency. Both tokens boast a market cap north of $50 billion. The closest competitor, BINANCE USD (BUSD) comes third with around $17.83 billion in market cap.
