Crypto & Blockchain News

Stablecoin Market Cap Contract for 14 Consecutive Months

This month, the stablecoin sector’s total market capitalization in the cryptocurrency space fell by 0.45% to $130 billion, its lowest level since September 2021, marking the fourteenth straight month of decline.

According to CCData’s latest Stablecoin & CBDC report, stablecoin trading volume fell 40.6% this month to 460 billion, the lowest monthly trading volume since December 2022. According to the report, as of May 22, only $292 billion had been traded, with volume on track be lower.

According to the report, while total stablecoin market cap fell this month, stablecoin dominance in cryptocurrencies increased to 11.1% as major crypto and cryptocurrency market contracts remained range-bound after failing to break key resistance levels.

TrueUSD (TUSD) bucked the bearish trend, with $29 billion trading volume on centralized trading platforms as of May 23, making it the second largest stablecoin by trading volume after BUSD and USDC. Due to increased demand and liquidity, the stablecoin is now worth $1,208.

While USDT balances on the centralized cryptocurrency trading platform have returned to pre-FTX crash levels of $9.33 billion, USDC and DAI balances on these platforms have fallen to their lowest levels since March 2021, according to the report.

The report comes at a time when JPMorgan’s chief global market strategist Marko Kolanovic has advised investors to rethink their portfolios due to global recession fears, advising investors to reduce their holdings and diversify into cash and gold as a precaution.

Kolanovic recently expressed concern in a memorandum about this year’s rally in stocks, which have seen gains of almost 10%.

His remarks were accompanied by dissatisfaction with Fed Funds futures, which predict some rate cuts by the end of the year. According to Kolanovic, such a scenario is unlikely to indicate a bullish trend. Such cuts are usually implemented in response to a severe economic downturn or shocks in financial markets.

Notably, Poland’s central bank accumulated 14.8 tonnes of gold in April, demonstrating the country’s proactive response to economic uncertainties.

According to the report, the country’s gold net worth, including gold deposits and gold exchanged, increased to $15.52 billion in April, up from $14.55 billion in the previous month.

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