- Stablecoins fell by 1.34% to $133 billion in March after Silicon Valley Bank collapsed.
- However, stablecoins trading volume reached $51.9B as USDC recovered its peg.
- BUSD no longer ranks among the top ten cryptos with the largest market cap.
CryptoCompare, a leading crypto data provider, recently published a report on the stablecoin market, highlighting the epic recovery of stablecoins USDC, DAI, and FRAX after they had lost their $1 peg following the crisis in the US banking sector.
According to the report, the total market cap of stablecoins fell by 1.34% to $133 billion in March, representing the lowest market share since September 2021, which also marked the twelfth consecutive month of decline.
CryptoCompare noted that the downfall was due to the collapse of Silicon Valley Bank, which was USDC’s banking partner. Data from the market tracking portal, CoinMarketCap, shows that USDC de-pegged to as low as $0.877 on March 11, which affected other stablecoins with USDC in reserves.
However, on March 14, stablecoins trading volume reached $51.9 billion as USDC and other stablecoins recovered their peg. The figure represented the highest daily volume recorded since November 10. Notably, the market cap of TUSD rose 82.6% to $2.04 billion, following Binance‘s resumption of TUSD trading pairs on the exchange.
The report also highlighted that USDT’s dominance strengthened to 57.5%, the highest since June 2021, after its market cap increased by $5.76 billion following the USDC de-peg in March.
Paolo Ardoino, the Chief Technology Officer of Tether, was quoted saying that USDT is on track for another record quarter, bringing additional equity over $1.6 Billion.
While USDT, USDC, and TUSD have attained significant feats recently, the Binance stablecoin BUSD continues to lose market share. BUSD no longer ranks among the top ten cryptocurrencies with the largest market cap.