The recent collapse of UST has wiped $25 billion off the Total Market Capitalisation of all stable coins....
Terra had seen a rapid increase in popularity through 2022, and by early May it had actually taken over BUSD as the number 3 stable coin by TMC, accounting for 10% of the stable coin market.
But not any more!
With the rapid sell off of UST it is now back down below FRAX and MIM, representing only 1% of the TMC of all stables. (CoinMarketCap)
And it could go lower, once (if?) the Terra Chain becomes operational again.
Stables Market May 13th 2022
Two months ago...
The massive $25 billion decline suggests that most of that UST money has cone to either other cryptos (probably Bitcoin mainly) or just plain OUT to fiat.
For the UST that has been exchanged for other cryptos, USDT is the main gainer, now back up to 50% market dominance, aND slight gains for USDC and also for BUSD.
So for now it's a return to the centralised stable coin folks!
Change in Stable coins by Market Dominance
| Coin | 13th May 2022 | Mid-March 2022 |
|---|---|---|
| USDT | 50% | 44% |
| USDC | 32% | 29% |
| TERRA | 1% | 8% |
| BUSD | 11% | 10% |
| DAI | 4% | 5% |
| FRAX | 1.5% | 1.5% |
| MIM | 1.5% | 1.5% |
| OTHERS | 2% | 3% |
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25 billion. It’s always amazing to think about the things one could do with that amount of money other than loosing it on some market. Lots of problems could be solved with such piles of funds!
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Have you seen the drop in USDT today, suddenly it dumped to 0,95 USD, quite strange. Another attack?
I'm not sure TBH! Probably just people cashing out.
Usdt will survive
HBD is in "OTHERS" is my guess.
We should keep an eye on USDT. With all the attention, they might go after that one.
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Yeah I'm not convinced by USDT myself!
Strange... Of all the places to go, to choose USDT. Seems like people who had lots of funds in UST keep looking for trouble even after getting out of UST.
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It is the easiest to trade I guess!
Is there still that much UST out there? I thought it was all changed into LUNA or other stable coins by now.
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I guess it's just all that's stuck on the chain since it halted?
It could be but it could also be the exchanges having a bunch of UST.
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Well I guess at this point it's not worth selling! Hold out for the airdrop maybe?!?
Yea because that is the current revival plan put forth by Do Kwon.
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Interesting to see if another top stable is attacked... It would make for a really high panic situation
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Obviously I hope not! We all do. But I think it's much harder to attack anything larger as they're all centralised.