Digital

Stablecoin Market Cap Shows Signs of Recovery as TrueUSD Hits $3 Billion

Picture Source: BeInCrypto

TrueUSD (TUSD) has reached a significant milestone, with its market cap surpassing $3 billion for the first time. This surge in TUSD’s market cap represents the most substantial combined increase among stablecoins since March 12, potentially indicating a turnaround for stablecoins and signaling the end of a prolonged period of monthly declines.

Since May 2022, the stablecoin market cap has been on a downward trend, triggered by the depegging of UST. The total market cap, which stood at $186 billion at that time, has now dropped to $128.23 billion, according to Defillama data.

TUSD’s circulating supply has more than doubled since the beginning of the year, reaching over 3 billion tokens as of June 16. Over the past week alone, TUSD’s market cap has increased by 51.14%, making it the second-largest stablecoin by circulating supply and transfer volume on the Tron blockchain.

Although TUSD briefly deviated from its dollar peg due to the suspension of minting from Prime Trust, it continues to thrive. Kaiko data reveals that the BTC-TUSD pair on Binance is the most traded BTC market in the crypto space, accounting for 61% of all BTC volume on the exchange.

On the other hand, Binance-backed stablecoin BUSD has dropped out of the top three stablecoins as its circulating supply was surpassed by DAI in the past week. Since peaking at over $22 billion in November 2022, BUSD’s circulating supply has been in decline. Regulatory action in February led to Binance supporting other stablecoins in the ecosystem, and as a result, BUSD’s market share has consistently decreased.

Despite concerns about reserves stemming from the collapse of crypto-friendly banks like Silicon Valley Bank, Silvergate, and Signature Bank, USD Coin (USDC) remains the second-largest stablecoin by market cap, currently valued at $28.13 billion.

Tether’s USDT remains the largest stablecoin by market cap, having reached an all-time high of over $83 billion. Despite recent FUD (fear, uncertainty, and doubt) surrounding its reserves and a slight depeg, USDT still commands around 65% of the market.

As stablecoins experience shifts in market positions and face various challenges, the overall growth and resilience of the sector remain notable. The recent surge in TUSD’s market cap signals a potential shift in sentiment for stablecoins, offering hope for stability and growth in the coming months.

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