Stablecoin | USDT market share back to 50%, BUSD supply decreases by $7.6 billion, market share drops tenfold

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USDT Dominance Returns to 50%

DeFillama data shows that the market share of USDT stablecoin has risen to nearly 50% at 49.2%, returning to the level seen in November 2021.

In March of last year, USDT's market share had dropped to a low of 42%. Currently, the top three stablecoins account for over 90% of the market share:

• USDT: 49.2%

• USDC: 31.05%

• BUSD: 11.49%

• DAI: 3.74%

BUSD Supply Decreases by $7.6 Billion

The total supply of BUSD was $234.7 billion in November last year, and it has now dropped to $158 billion, a decrease of approximately $7.6 billion, with a decrease of around $2 billion in the past 30 days.

In fact, the total market value of stablecoins has been declining for ten consecutive months, but the significant decline in the total supply of BUSD is widely believed to be related to the exploit vulnerability discovered earlier this month.

Algorithmic Stablecoin Dominance Drops Tenfold

CryptoCompare reported that the total market value of stablecoins has been declining for ten months, falling to $137 billion, with an overall market share of 12.4%, much lower than the 16.5% at the end of December last year. CryptoCompare believes this indicates investors are shifting towards holding riskier assets such as competing coins.

Furthermore, the market share of algorithmic stablecoins has dropped from a high of 12.4% in April last year to 1.71%, primarily due to the collapse of TerraUSD, which held a market share of 79.8% in algorithmic stablecoins at that time.

The failure of Waves Neutrino USD USDN's peg and the termination of the Vader Protocol USDV have further reduced the overall market share of algorithmic stablecoins.

The total market value of algorithmic stablecoins was around $23.3 billion at its peak last year, and it is currently approximately $2.37 billion at the time of writing.