DeFillama data reveals USDT’s market dominance at a high since Nov. 2021, while BUSD supply decreased by $2 billion in the last month.
DeFillama data shows top 3 stablecoins control 92% of the market, with USDT leading at 49.18%, USD Coin at 31.05%, and BUSD at 11.52%.
The stablecoin market has declined for ten consecutive months, reaching a low of $137 billion in January, according to a report by CryptoCompare. The report indicates this is the lowest stablecoin market cap since 2021.
The report revealed that USDT’s market cap inched up 0.82% to reach $66.7 billion, while USDC and BUSD saw a decrease of 2.27% and 3.97% to $43.1 billion and $16.1 billion, respectively. On the other hand, the market cap of less popular stablecoins TUSD and USTC increased by 24.5% and 13.1% to $940 million and $225 million, respectively.
The stablecoin sponsored by Binance has had a difficult month due to reports regarding prior mismanagement.
On Jan. 10, Bloomberg reported issues with BUSD management leading to $1B in missing collateral. Binance also confirmed storing customer funds and BNB chain tokens collateral in the same wallet.
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According to the report, fear increased among users causing mass withdrawals, with the main outflows being BUSD and BNB.
CZ says Binance’s books are healthy, and traditional finance firms cutting crypto ties will face long-term consequences.
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