2022 has not been a good year for the crypto market in general and the same is true for stablecoins as well because their total market capitalization dropped by $28 billion this year alone.
In addition, the stablecoin economy has listed about $3 billion in value in the last 23 days, as there was a 23.3% drop in BUSD in the previous month.
Stablecoin economy loses value
Stablecoins have seen their market value drop and almost $28 billion has been wiped from the stablecoin economy since January 2022.
According to archived data, the total value of the stablecoin economy on January 5th, 2022 was $167.08 billion, but it has dropped 16.77% lower to reach $139.06 billion.
The total market value of stablecoins was last seen at this low on October 23rd in the previous year, or almost 14 months back.
The market capitalization of tether (USDT) in January had been around $77.14 billion, but it has now dropped to $66.25 billion.
14 months ago, the valuation of USD Coin (USDC) had been about $42.74 billion, but its market cap this week was around $44.28 billion.
More numbers
On January 5th, 2022, BUSD had a market capitalization of about $14.28 billion, while TerraUSD (UST) had had a market cap of about $10.19 billion.
BUSD has seen its market cap rise, as it stood at $17.16 billion on December 28th, 2022, but UST has seen its value drop to $215 million.
In December alone, there has been a drop in value of the stablecoin economy by $3.08 billion, as it dropped to $138.99 billion from $142.07 billion.
The market cap of BUSD on December 5th had been higher than its current value of $17.16 billion. In fact, it had been about 22% higher, as it was around $22.08 billion.
The market value of the DAI stablecoin of Makerdao had stood at $9.07 billion on January 5th, but its current value is 43.55% less at $5.12 billion.
After this stablecoin, there are other dollar-pegged tokens, such as Gemini dollar, USDD, True USD, Pax Dollar and Frax.
Stablecoins depegged
There are several stablecoins that have been pushed down a number of positions and these are mostly coins that were pegged to the dollar, such as neutrino usd, fei usd, liquidity usd and magic internet money.
On November 7th, 2022, Neutrino usd (USDN) depegged from its $1 parity and is now trading at a value of $0.448, even though it had been stable once upon a time.
HUSD is also another stablecoin that was unable to maintain its peg. On October 27th, 2022, it had fallen from $1 parity. On December 28th, the price of one HUSD token had come down to $0.14.
In addition flex usd (FLEXUSD) is also another stablecoin to have lost its dollar peg, which occurred on June 20th and it has come down to $0.25 per unit.
The total trading volume on December 5th was around $107.29 billion and stablecoins accounted for about $60.74 billion of this total, which makes it about 56.61% of total trading.
