The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg2022 has been an interesting year for stablecoin assets as the market capitalization of the entire stablecoin economy lost just over $28 billion in value. Moreover, more than $3 billion has been erased from the stablecoin economy during the last 23 days as BUSD shed roughly 23.3% during the last month. Over $3 Billion in […]

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The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg

2022 has been an interesting year for stablecoin assets as the market capitalization of the entire stablecoin economy lost just over $28 billion in value. Moreover, more than $3 billion has been erased from the stablecoin economy during the last 23 days as BUSD shed roughly 23.3% during the last month.

Over $3 Billion in USD Value Has Been Erased From the Stablecoin Economy in 23 Days

The market valuation of stablecoins has continued to slide and since Jan. 2022, $28.08 billion in U.S. dollar value has left the stablecoin economy. Archived data indicates that the stablecoin economy was valued at $167.08 billion on Jan. 5, 2022, and today it’s valued at $139.06 billion or 16.77% lower than the first week of the year.

The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg

The stablecoin economy has not been this low in U.S. dollar value since Oct. 23, 2021, or around 14 months ago. In Jan. 2022, tether (USDT) had a market capitalization of around $77.14 billion, and today it’s down to $66.25 billion.

The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg

Usd coin’s (USDC) valuation 14 months ago was $42.74 billion and this week USDC’s market cap is roughly $44.28 billion. BUSD’s market cap was $14.28 billion on Jan. 5, 2022, and terrausd’s (UST) market valuation was roughly $10.19 billion.

On Dec. 28, 2022, BUSD’s market cap is higher at $17.16 billion, but UST’s valuation was obliterated down to the current $215 million. UST was one of many stablecoins that depegged from the U.S. dollar this year.

This month alone the stablecoin economy shed $3.08 billion in value as it slid from $142.07 billion to the current $138.99 billion. On Dec. 5, 2022, BUSD had a market cap of around $22.08 billion which is more than 22% higher than the current $17.16 billion.

356 days ago on Jan. 5, Makerdao’s DAI stablecoin had a market valuation of around $9.07 billion, which is 43.55% higher than DAI’s current $5.12 billion value. Below the stablecoin DAI are the dollar-pegged tokens frax, pax dollar, true usd, usdd, and gemini dollar.

In Addition to Terrausd, Neutrino USD, HUSD, and FLEXUSD Depegged From Their $1 Parity

Stablecoins that have been bumped down a number of positions include dollar-pegged coins like magic internet money, liquity usd, fei usd, and neutrino usd. The once-stable coin neutrino usd (USDN) is currently trading for $0.448 per unit after depegging from the $1 parity on Nov. 7, 2022.

The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg

Another former stablecoin that also lost its peg is HUSD, which depegged from the $1 parity on Oct. 27, 2022. A single HUSD token is currently exchanging hands for $0.14 per unit on Dec. 28.

The Stablecoin Economy Shed $28 Billion in 2022 After a Handful of Tokens Lost Their $1 Peg

Furthermore, the once-stable coin flex usd (FLEXUSD) also lost its dollar peg this year. FLEXUSD is now trading for $0.25 per unit as it depegged from the $1 parity on June 20, 2022.

On Dec. 5, 2022, stablecoins represented $60.74 billion of the $107.29 billion in 24-hour trade volume recorded that day, which equates to 56.61% of all trades. 23 days later, the global trade volume is much lower at $37 billion, while stablecoins represent $29.92 billion or roughly 80.86% of the trades recorded on Dec. 28, 2022.

What do you think about stablecoins this year losing $28 billion in value and the handful of dollar-pegged tokens that depegged from their $1 parity this year? Let us know what you think about this subject in the comments section below.

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