Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears

0 1

Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears

According to statistics on Friday, May 13, the top stablecoins by market capitalization are currently worth $163.7 billion after the stablecoin economy was valued at close to $200 billion just last week. Of course, the climactic terrausd (UST) failure wiped out billions from the stablecoin economy, and Binance’s stablecoin BUSD has recently entered the top ten crypto market capitalization positions. Just as it caused carnage in the crypto economy, Terra’s recent downfall has caused a great shift within the stablecoin ecosystem.

The Stablecoin Economy’s Great Shift

It was only a week ago when the stablecoin economy was awfully close to surpassing the $200 billion mark, but Terra’s recent collapse changed all that. Terra’s once stable token terrausd (UST) was once the third-largest stablecoin in existence until it lost its $1 parity. The token that’s supposed to be pegged to a U.S. dollar’s value is now trading for under $0.20 per unit. Still, the market valuation makes it the sixth-largest market cap in coingecko.com’s “Stablecoins by Market Capitalization” list.

During the last month, out of the top ten stablecoins by market valuation, none of the stablecoin projects saw growth. USDC dipped by 0% over the last 30 days, while all the other top stablecoins saw 30-day declines. BUSD is now the third-largest stablecoin token today with a $17.3 billion market capitalization and BUSD has also stepped into the top ten crypto coins by market cap, taking the ninth position among 13,000+ coins.

Makerdao’s DAI token is now the fourth-largest stablecoin market capitalization with $6 billion today. Makerdao’s native token MKR jumped 15% in value during the past 24 hours taking on some of UST’s fallout. In fact, most of the stablecoins that have managed to remain stable and have reaped the benefits of UST’s crash.

While Some See the Need for ‘More Regulatory Framework’ Around Fiat-Pegged Coins, Some Believe a Decentralized Stablecoin Is Still Needed

On May 12, 2022, Circle Financial’s CEO Jeremy Allaire tweeted: “USDC/USDT is the trade of the day. Flight to quality.” The Circle executive appeared on CNBC’s broadcast “Squawk Box,” and noted that there needs to be “more regulatory framework around stablecoins.” A number of people have been watching the performance of so-called decentralized and algorithmic stablecoins extremely closely since Terra’s downfall.

Despite the recent Terra UST carnage, many still believe there’s a great need for decentralized and algorithmic stablecoins among the centralized giants. Avalanche (AVAX) founder Emin Gün Sirer believes the crypto ecosystem needs a decentralized stablecoin.

A day before LUNA went under a U.S. penny, Gün Sirer said: “Even fully-collateralized fiat stablecoins have de-pegged. Even some of the weak [algorithmic] stablecoins have recovered.” The AVAX founder also stated that he had “always said that [algorithmic] stables are subject to destabilizing bank runs.” Despite the bank run risk, Gün Sirer explained that a decentralized stablecoin is still needed in the industry.

“We need a decentralized stablecoin,” Gün Sirer detailed. “Fiat-backed stables are subject to legal seizure and capture. A decentralized economy needs a decentralized stablecoin whose backing store cannot be frozen or confiscated.”

What do you think about the stablecoin economy shuffle this week? Let us know what you think about this subject in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 30,435.00 1.25%
ethereum
Ethereum (ETH) $ 2,091.93 2.83%
tether
Tether (USDT) $ 1.00 0.09%
usd-coin
USD Coin (USDC) $ 1.00 0.08%
binance-coin
BNB (BNB) $ 305.71 2.25%
xrp
XRP (XRP) $ 0.438317 2.76%
cardano
Cardano (ADA) $ 0.580398 2.87%
solana
Solana (SOL) $ 56.89 4.70%
binance-usd
Binance USD (BUSD) $ 1.01 0.26%
polkadot
Polkadot (DOT) $ 11.13 2.99%
dogecoin
Dogecoin (DOGE) $ 0.091127 3.28%
avalanche-2
Avalanche (AVAX) $ 34.38 3.10%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 30,455.00 1.42%
staked-ether
Lido Staked Ether (STETH) $ 2,059.25 3.21%
tron
TRON (TRX) $ 0.072712 4.40%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 4.30%
dai
Dai (DAI) $ 1.00 0.07%
litecoin
Litecoin (LTC) $ 72.62 7.32%
crypto-com-chain
Cronos (CRO) $ 0.201680 3.49%
matic-network
Polygon (MATIC) $ 0.730265 6.50%
leo-token
LEO Token (LEO) $ 4.96 0.85%
near
NEAR Protocol (NEAR) $ 6.65 0.55%
ftx-token
FTX Token (FTT) $ 32.09 0.17%
bitcoin-cash
Bitcoin Cash (BCH) $ 206.58 3.29%
chainlink
Chainlink (LINK) $ 7.69 2.34%
stellar
Stellar (XLM) $ 0.141410 3.17%
algorand
Algorand (ALGO) $ 0.497415 7.18%
cosmos
Cosmos Hub (ATOM) $ 11.53 3.22%
okb
OKB (OKB) $ 12.89 3.85%
monero
Monero (XMR) $ 174.02 6.08%
flow
Flow (FLOW) $ 3.03 4.99%
ethereum-classic
Ethereum Classic (ETC) $ 21.72 3.38%
apecoin
ApeCoin (APE) $ 8.81 8.72%
uniswap
Uniswap (UNI) $ 5.45 7.25%
elrond-erd-2
Elrond (EGLD) $ 100.41 7.20%
hedera-hashgraph
Hedera (HBAR) $ 0.108939 5.45%
vechain
VeChain (VET) $ 0.032860 5.02%
internet-computer
Internet Computer (ICP) $ 8.60 5.11%
theta-fuel
Theta Fuel (TFUEL) $ 0.071688 2.73%
magic-internet-money
Magic Internet Money (MIM) $ 0.992471 0.30%
decentraland
Decentraland (MANA) $ 1.23 2.61%
filecoin
Filecoin (FIL) $ 8.61 3.19%
axie-infinity
Axie Infinity (AXS) $ 21.65 7.69%
the-sandbox
The Sandbox (SAND) $ 1.38 3.06%
compound-ether
cETH (CETH) $ 42.10 2.28%
tezos
Tezos (XTZ) $ 1.86 3.90%
defichain
DeFiChain (DFI) $ 3.12 2.21%
chain-2
Chain (XCN) $ 0.091721 13.08%
frax
Frax (FRAX) $ 0.998604 0.37%
kucoin-shares
KuCoin Token (KCS) $ 14.88 6.89%
zcash
Zcash (ZEC) $ 115.65 12.61%
maker
Maker (MKR) $ 1,574.24 2.34%
theta-token
Theta Network (THETA) $ 1.40 3.62%
pancakeswap-token
PancakeSwap (CAKE) $ 4.70 3.38%
eos
EOS (EOS) $ 1.38 4.17%
terra-luna
Terra (LUNA) $ 0.000191 1.31%
aave
Aave (AAVE) $ 91.42 7.28%
the-graph
The Graph (GRT) $ 0.181725 2.89%
klay-token
Klaytn (KLAY) $ 0.435875 8.93%
true-usd
TrueUSD (TUSD) $ 1.00 0.16%
huobi-btc
Huobi BTC (HBTC) $ 30,414.00 1.09%
iota
IOTA (MIOTA) $ 0.397324 9.17%
huobi-token
Huobi Token (HT) $ 7.07 0.99%
compound-usd-coin
cUSDC (CUSDC) $ 0.022741 0.06%
bitcoin-sv
Bitcoin SV (BSV) $ 55.73 3.38%
bittorrent
BitTorrent (BTT) $ 0.000001 2.43%
thorchain
THORChain (RUNE) $ 3.41 5.12%
terrausd
TerraUSD (UST) $ 0.090214 4.54%
quant-network
Quant (QNT) $ 74.42 4.25%
paxos-standard
Pax Dollar (USDP) $ 1.00 0.23%
stepn
STEPN (GMT) $ 1.59 9.89%
ecash
eCash (XEC) $ 0.000050 4.92%
helium
Helium (HNT) $ 9.18 4.75%
fantom
Fantom (FTM) $ 0.356498 4.03%
gatechain-token
GateToken (GT) $ 5.73 5.64%
radix
Radix (XRD) $ 0.088089 0.55%
neutrino
Neutrino USD (USDN) $ 0.972282 2.53%
cdai
cDAI (CDAI) $ 0.022121 0.13%
bitdao
BitDAO (BIT) $ 0.848285 0.73%
arweave
Arweave (AR) $ 15.80 1.70%
nexo
NEXO (NEXO) $ 1.40 1.53%
neo
NEO (NEO) $ 11.02 6.36%
zilliqa
Zilliqa (ZIL) $ 0.053160 5.07%
kusama
Kusama (KSM) $ 83.58 12.75%
convex-finance
Convex Finance (CVX) $ 12.22 10.57%
enjincoin
Enjin Coin (ENJ) $ 0.742557 4.06%
waves
Waves (WAVES) $ 6.93 6.13%
amp-token
Amp (AMP) $ 0.014156 2.85%
gala
Gala (GALA) $ 0.089893 3.88%
dash
Dash (DASH) $ 60.83 5.18%
havven
Synthetix Network Token (SNX) $ 2.90 4.92%
chiliz
Chiliz (CHZ) $ 0.120588 4.74%
celo
Celo (CELO) $ 1.46 2.16%
basic-attention-token
Basic Attention Token (BAT) $ 0.416733 4.05%
loopring
Loopring (LRC) $ 0.497798 5.46%
osmosis
Osmosis (OSMO) $ 1.64 0.64%
maiar-dex
Maiar DEX (MEX) $ 0.000121 7.01%
blockstack
Stacks (STX) $ 0.581130 3.03%
pax-gold
PAX Gold (PAXG) $ 1,831.48 0.40%
gnosis
Gnosis (GNO) $ 230.16 2.36%
harmony
Harmony (ONE) $ 0.049525 4.23%
compound-usdt
cUSDT (CUSDT) $ 0.021768 0.00%
xdce-crowd-sale
XDC Network (XDC) $ 0.045559 1.58%
mina-protocol
Mina Protocol (MINA) $ 1.10 4.06%
nem
NEM (XEM) $ 0.061430 4.02%
lido-dao
Lido DAO (LDO) $ 1.52 6.59%
kadena
Kadena (KDA) $ 2.97 1.92%
fei-usd
Fei USD (FEI) $ 1.00 0.33%
curve-dao-token
Curve DAO Token (CRV) $ 1.39 0.95%
decred
Decred (DCR) $ 38.59 0.08%
kava
Kava (KAVA) $ 2.72 13.76%
compound-governance-token
Compound (COMP) $ 73.79 8.56%
frax-share
Frax Share (FXS) $ 8.32 0.94%
nxm
Nexus Mutual (NXM) $ 71.08 2.81%
holotoken
Holo (HOT) $ 0.002715 3.46%
tether-gold
Tether Gold (XAUT) $ 1,867.87 0.52%
tokenize-xchange
Tokenize Xchange (TKX) $ 5.61 2.27%
ecomi
ECOMI (OMI) $ 0.001646 5.98%
qtum
Qtum (QTUM) $ 4.25 5.68%
iostoken
IOST (IOST) $ 0.018244 3.77%
bancor
Bancor Network Token (BNT) $ 1.46 2.50%
oec-token
OKC Token (OKT) $ 25.68 14.39%
juno-network
JUNO (JUNO) $ 8.11 5.53%
1inch
1inch (1INCH) $ 0.956878 3.84%
serum
Serum (SRM) $ 1.26 3.05%
livepeer
Livepeer (LPT) $ 15.29 4.56%
flex-coin
FLEX Coin (FLEX) $ 4.91 0.39%
moonbeam
Moonbeam (GLMR) $ 1.39 6.87%
evmos
Evmos (EVMOS) $ 1.83 1.71%
omisego
OMG Network (OMG) $ 2.58 5.18%
msol
Marinade staked SOL (MSOL) $ 59.42 4.56%
0x
0x (ZRX) $ 0.425823 5.88%
xido-finance
Xido Finance (XIDO) $ 12.68 0.43%
celsius-degree-token
Celsius Network (CEL) $ 0.843963 1.48%
yearn-finance
yearn.finance (YFI) $ 9,991.75 1.76%
liquity-usd
Liquity USD (LUSD) $ 1.00 0.06%
bitcoin-gold
Bitcoin Gold (BTG) $ 19.98 2.65%
rocket-pool
Rocket Pool (RPL) $ 20.94 3.85%
secret
Secret (SCRT) $ 1.99 5.41%
olympus
Olympus (OHM) $ 17.13 3.89%
link
LINK (LN) $ 54.72 0.74%
ravencoin
Ravencoin (RVN) $ 0.031720 5.31%
audius
Audius (AUDIO) $ 0.468856 6.74%
ankr
Ankr (ANKR) $ 0.040749 6.68%
husd
HUSD (HUSD) $ 1.00 0.00%
skale
SKALE (SKL) $ 0.091639 11.15%
bitkub-coin
Bitkub Coin (KUB) $ 3.61 1.88%
convex-crv
Convex CRV (CVXCRV) $ 1.39 1.97%
iotex
IoTeX (IOTX) $ 0.033657 12.09%
ethereum-name-service
Ethereum Name Service (ENS) $ 12.79 21.93%
just
JUST (JST) $ 0.043027 2.97%
everdome
Everdome (DOME) $ 0.025892 2.64%
songbird
Songbird (SGB) $ 0.034115 24.76%
usdd
USDD (USDD) $ 1.00 0.12%
icon
ICON (ICX) $ 0.402432 5.33%
swissborg
SwissBorg (CHSB) $ 0.315621 0.40%
everscale
Everscale (EVER) $ 0.239944 0.36%
oasis-network
Oasis Network (ROSE) $ 0.085034 10.41%
siacoin
Siacoin (SC) $ 0.005647 5.98%
titanswap
TitanSwap (TITAN) $ 2.86 1.30%
dogelon-mars
Dogelon Mars (ELON) $ 0.000001 2.24%
constellation-labs
Constellation (DAG) $ 0.110501 3.66%
safemoon
SafeMoon [OLD] (SAFEMOON) $ 0.000000 2.15%
sushi
Sushi (SUSHI) $ 1.44 12.23%
zencash
Horizen (ZEN) $ 22.21 7.89%
golem
Golem (GLM) $ 0.270277 4.37%
mimatic
MAI (MIMATIC) $ 0.996861 0.08%
synapse-2
Synapse (SYN) $ 1.45 3.26%
wax
WAX (WAXP) $ 0.128900 1.42%
trust-wallet-token
Trust Wallet Token (TWT) $ 0.735969 7.70%
safemoon-2
SafeMoon (SFM) $ 0.000447 8.42%
ontology
Ontology (ONT) $ 0.289685 4.73%
render-token
Render Token (RNDR) $ 0.977813 1.61%
ethos
Voyager Token (VGX) $ 0.850829 1.41%
gemini-dollar
Gemini Dollar (GUSD) $ 1.01 0.19%
astar
Astar (ASTR) $ 0.070243 3.86%
pocket-network
Pocket Network (POKT) $ 0.228363 9.05%
swipe
SXP (SXP) $ 0.486952 6.09%
plex
PLEX (PLEX) $ 0.905164 2.21%
escoin-token
Escoin Token (ELG) $ 3.39 2.95%
smooth-love-potion
Smooth Love Potion (SLP) $ 0.005737 7.24%
tenset
Tenset (10SET) $ 2.57 9.44%
woo-network
WOO Network (WOO) $ 0.208335 6.39%
uma
UMA (UMA) $ 3.30 8.97%
tether-eurt
Euro Tether (EURT) $ 1.05 1.01%
nucypher
NuCypher (NU) $ 0.180019 0.09%
immutable-x
Immutable X (IMX) $ 0.931567 5.92%
kyber-network-crystal
Kyber Network Crystal (KNC) $ 2.14 36.72%
playdapp
PlayDapp (PLA) $ 0.589652 1.93%
apenft
APENFT (NFT) $ 0.000001 4.03%
polymath
Polymath (POLY) $ 0.232594 5.15%
velas
Velas (VLX) $ 0.090518 12.82%
mxc
MXC (MXC) $ 0.085046 10.93%
digibyte
DigiByte (DGB) $ 0.013221 10.26%
illuvium
Illuvium (ILV) $ 310.17 2.94%
hive
Hive (HIVE) $ 0.547592 9.18%
rally-2
Rally (RLY) $ 0.071864 2.08%
casper-network
Casper Network (CSPR) $ 0.040957 0.33%
acala
Acala (ACA) $ 0.479192 1.45%
dydx
dYdX (DYDX) $ 2.01 6.33%