Crypto analytics firm Santiment reports that the combined market capitalization of the top six stablecoins (USDT, USDC, BUSD, DAI, TUSD, and USDP) is showing signs of recovery in recent days. This comes after a notable decline that began in Q1 of last year due to a prolonged “crypto winter.”
According to the latest data, the combined market cap of these stablecoins has climbed past $121 billion, gaining over $660 million in just the past two weeks. This uptick is a small but encouraging shift compared to the general downtrend observed over the past year and a half. For context, these stablecoins had a combined market cap of roughly $165 billion in May 2022, before the Terra collapse impacted the market.
Several other events contributed to further drops in market capitalization. The FTX meltdown in November last year and the U.S. banking crisis this spring notably affected the market. The banking crisis was especially damaging for USDC due to Circle’s substantial exposure to Silicon Valley Bank (SVB). Before the crisis, USDC’s market cap was above $44 billion, according to CoinGecko, but it has since dwindled to about $26 billion.
Interestingly, USDT (Tether), the leading stablecoin, has bucked this trend. It has not only maintained its market cap but also increased its dominance over its competitors. As per CoinGecko, Tether’s market capitalization reached a record high of over $84.1 billion in early August, displaying resilience amid the broader market’s challenges.