CryptoNews

Paypal and First Digital Stablecoins Dominate in December as Binance USD Heads Toward Extinction

Paypal and First Digital Stablecoins Dominate

The leading stablecoins, in terms of market capitalization, concluded 2023 with a combined value of around $131.69 billion, yet only two of the top ten experienced increases in 30-day supply. Data reveals that tether, the leading U.S. dollar-pegged crypto asset, observed a 2.5% uptick in its supply, while the newcomer, first digital usd, enjoyed a substantial 85.7% rise.

Stablecoin Market Sees Varied Performances Last Month

Although the stablecoin market significantly declined since 2022, it ascended once more towards the close of 2023, reaching heights unseen since last May. Yet, among the top ten stablecoins by market capitalization, only two witnessed an uptick in supply over the last 30 days. From Dec. 1, 2023, to Jan. 1, 2024, tether (USDT), the largest stablecoin by market valuation, experienced a 2.5% boost in supply. Presently, USDT holds a market capitalization of $91.86 billion.

USDC experienced a slight 0.2% dip, while DAI encountered a 1.7% decline. The greenback-pegged trueusd (TUSD) underwent a 22% contraction in its supply during December. In contrast, the fifth-ranked stablecoin, first digital usd (FDUSD), surged by 85.7%, currently boasting a market valuation of $1.8 billion. BUSD noted a supply reduction of approximately 39% last month, with its market cap now hovering at just over $1 billion. Additionally, Tron’s USDD also saw a downtick, with 1.3% of its total supply diminishing in the past 30 days.

FRAX and USDP experienced respective declines ranging from 3.2% to 16.7%. Meanwhile, Paypal’s new stablecoin PYUSD notched a significant 68.8% increase, surpassing liquity usd (LUSD) this month. As of Jan. 1, PYUSD’s total supply exceeded 264 million units. In the last 24 hours, the global trade volume has hovered around $64 billion, with stablecoins making up over $42 billion of that activity. This implies that for every ten trades, stablecoins are used in more than six.

In the past month, numerous stablecoin supplies have seen a contraction, yet others have marked considerable growth, forging new paths in the crypto economy. PYUSD, introduced by a behemoth in the payments sector Paypal, stands in contrast to the emerging yet rapidly growing FDUSD, which has swelled impressively in size throughout the end of 2023. Additionally, even after shedding a notable portion of its supply over the preceding year, BUSD continues to maintain strong daily trading volumes.

What do you think about the stablecoin market action in December? Share your thoughts and opinions about this subject in the comments section below.

Source: Bitcoin

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