Stablecoins at their lowest market cap since 2021: Report

ambcrypto.com:

According to a 22 February CryptoCompare report, the total market capitalization of the sector’s stablecoins fell to $136 billion in February. This number was the lowest since September 2021.

The report stated:

“In February, the total market capitalisation of stablecoins fell 0.68% to $136bn (up to 20th February), the lowest stablecoins market cap since September 2021 and the eleventh consecutive month of decline.”

The total market share of stablecoins is now 11.4%, down from around 12.31% in January. Since April 2022, this is their lowest market share.

According to the report, Tether’s [USDT] market cap increased by $2 billion. The figure, combined with a 676% increase in BUSD/USDT trading volume on 13 February, suggested that a significant portion of Binance USD [BUSD] has been exchanged for USDT.

Moreover, the market cap of BUSD has fallen 18% to $13.2 billion since Paxos stopped minting the stablecoin, according to the report.

Furthermore, the Securities and Exchange Commission (SEC) has informed Paxos that it intended to sue it for violating investor protection laws. According to the notice, BUSD is an unregistered security. BUSD is listed on several exchanges, including Paxos.

In February, USDT’s stablecoin’s market share increased from 48.7% to 51.7%, the highest level since October 2021.

Following the SEC’s move against the BUSD, Paxos’ stablecoins experienced significant outflows. This resulted in a 15.8% and 24.37% drop in the market capitalizations of BUSD and Pax Dollar [USDP], respectively, to $13.3 billion and $729 million. As a result, Tron DAO [USDD] surpassed USDP as the seventh largest stablecoin, with the market cap of USDD rising by 0.57% to $724 million in February.

Tether’s USDT and TrueUSD [TUSD] may have