Blast’s USDB recovered from a de-peg occasion and Tether dominance rose by 7%.
The stablecoin market endured excessive levels of volatility over the weekend because the crypto market crashed. Solely two of the highest 20 stablecoins by market capitalization misplaced their peg for greater than an hour, and each of them rebounded again by 1:00 am EST Monday.
Ondo’s US Greenback Yield Token, USDY fell by as a lot as 4.7%, from $1.05 to $1.00, and took a bit over an hour to reclaim its goal worth. USDB additionally confronted a 5% depeg on Sunday night time. The Blast-native stablecoin, backed by Maker’s DAI, fell as little as $0.95 and took 2 hours to reclaim its peg of $1.00.
crvUSD, FDUSD, and USDD all suffered transient depegs as properly, nevertheless these tokens suffered losses of two.5%-3% and recovered inside 20 minutes.
August 3 and 4 recorded the very best weekend stablecoin switch quantity since June 9, combining for $107 billion, a 60% enhance from the earlier weekend’s $67 billion.
Rising Market Cap
The overall stablecoin market capitalization now sits at $164.4 billion, up 26% from the start of the 12 months, with Tether’s USDT commanding practically 70% of the whole stablecoin market share.
On July 28, stablecoins accounted for roughly 6.5% of crypto’s whole market capitalization, however reached as excessive as 8.7% throughout Sunday night time’s crash as market members transformed to stables. As a result of sell-off, the whole variety of stablecoin switch transactions hit its highest quantity since Aug. 25 2022, based on Atermis Terminal.
All through the frenzy market members used Tether’s USDT as their stablecoin of alternative. USDT recorded $185 billion in 24 buying and selling quantity based on TradingView in comparison with USDC’s $24.5 billion, and USDT dominance rose by 7%.
Beside being the most important stablecoin by market capitalization, Tether’s Q2 audit additionally offered customers with a way of security surrounding the asset. Within the firm’s public assertion, Tether reported $5.2 billion in further reserves that may very well be used to assist keep USDT’s peg in a black swan model occasion.
DeFi Liquidations
Large demand was positioned on stablecoin reserves because the market confronted panic promoting and liquidations. Decentralized Finance (DeFi) platform AAVE processed $400 million in liquidations on Aug 4, and their GHO stablecoin maintained its peg all through the compelled promoting.
Stani Kulechov of Avara took to social media this morning to spotlight the energy and stated “Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value”.
