In September 2023, the cryptocurrency sector related to stablecoins witnessed a series of significant events. According to CCData researchers, a noteworthy trend emerged during this period: it marked the 18th consecutive month of declining market capitalization for stablecoins, with the figure reaching only 124 billion USD. This trend harks back to September 2021 when stablecoin market capitalization also experienced a decline.
Several significant events contributed to the market instability, such as the Federal Open Market Committee (FOMC) meeting and asset liquidation announcement by FTX. However, the cryptocurrency market demonstrated resilience by quickly recovering and stabilizing after these fluctuations.
During this time, two renowned stablecoins, Tether (USDT) and DAI, displayed modest growth despite the overall market downturn. The market capitalization of USDT increased by an additional 334 million USD, representing a 0.4% monthly growth and maintaining its dominant position with a 67.2% market share.
The increasing demand for Tether on cryptocurrency exchanges contributed to its growth. A recent survey revealed that 24.7% of USDT is currently held on exchanges, up from 17.6%.
While there was a decrease in stablecoin trading volume on centralized exchanges like Coinbase Global Inc., it remained relatively high. Stablecoins continue to play a vital role in the global financial system and serve as a safe haven for assets amid uncertainties in traditional financial institutions.