cryptopotato.com
The market capitalization of the six largest stablecoins – USDT, USDC, DAI, BUSD, TUSD, and USDP – has spiked by over $1 billion over the weekend, marking the biggest climb in three months.
This could be considered a breath of fresh air for those assets since some have shown signs of weakness lately. USDT – the leading stablecoin with a current market cap of over $83 billion – slightly deviated from its $1 dollar parity last week, sparking concerns among the community.
However, the price returned to its $1 level in the following days, while Tether’s CTO Paolo Ardoino explained the fluctuation with the recently-induced FUD in the market.
Stablecoins Are Back on Track
According to data presented by Santiment, such a spike in the stablecoin market cap was last seen on March 12. The figures were mainly fueled by the performance of True USD (TUSD), whose market capitalization surged from approximately $2 billion to over $3 billion over the past few days.
The company further explained that the overall jump comes after a “gradual decline” in the past 15 months and could signal an “increased crypto buying power.”
This year’s most considerable fluctuations occurred by the time of the collapse of Silicon Valley Bank (SVB) in March and the subsequent disclosure that Circle (the entity behind USDC) had a massive $3.3 billion exposure to the fallen financial institution.
The asset tumbled way below its $1 price target, reaching $0.87, whereas the combined market cap of the six largest stablecoins dropped by over 4% to around $124 billion.
Circle vowed to cover any investor losses due to the crisis, assuring it continues the normal course of its operations. USDC reacted positively, matching the valuation of the greenback once again, and the combined stablecoin market cap of the six tokens surpassed $130 billion.
Recent Changes in the Stablecoin Landscape
Stablecoins have been in the spotlight lately, with some assets surpassing their rivals in terms of circulation or liquidity.
USDT remains the undisputed leader in the field, with a market capitalization of more than $83 billion. It is worth mentioning that the figure reached an ATH at $83.8 billion on June 12 (according to CoinGecko) but slightly tumbled in the following days after the asset deviated from its $1 price target.
Tether’s CTO Ardoino remained unfazed by the issue, saying the markets are “edgy” due to FUD circulating in the space. And while USDT quickly restored its valuation, it gave way to USDC, which became the most liquid stablecoin on centralized exchanges.
Another development worth mentioning is the change of positions between DAI and BUSD. The former recently surpassed the latter’s market cap, becoming the third-largest stablecoin behind USDT and USDC.