Share of transactions with stablecoins on exchanges increased by 16% in a year and a half

According to analysts, one of the reasons was the tightening of the regulation in the United States

23.06.2023 - 13:45

3 min

What’s new? The share of stablecoins in transactions on centralized cryptocurrency exchanges (CEXs) has reached 76%, up from 60% in early 2022. Tighter regulation of the crypto market in the United States and the closure of a number of fiat payment gateways have led to this, according to a report by blockchain analytics firm Kaiko.

The full version of the report

Situation on the stablecoin market. Tether’s centralized USDT remains the market leader. Analysts point out that investors do not pay attention to Tether’s opaque financial statements and seem to focus more on indicators such as peg stability, availability of liquidity, and versatility of use.

Tether has met its reserve disclosure obligations

In 2021, the company was required to regularly publish financial statements

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As of June 23, USDT has a capitalization of more than $83,19 billion. The asset ranks third in CoinMarketCap’s overall cryptocurrency ranking. Its closest competitor, USDC from the Circle issuer, is located on the fifth line with a capitalization of $28,44 billion. DAI closes the top three with a figure of $4,71 billion (17th place in the overall ranking).

The year 2023 brought a number of important changes to the market. At the beginning of the year, fintech company Paxos stopped issuing the BUSD stablecoin for crypto exchange Binance by the decision of the New York State Department of Financial Services (NYDFS). USDC faced a decline in capitalization and a temporary loss of parity with the dollar. The company attributed this to the actions of US regulators that led to the banking crisis.

Circle completely has got rid of US Treasury bonds in USDC reserves

The decision comes amid uncertainty about the decision to raise the US debt ceiling

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At the same time, on May 1, the number of stablecoins on the exchanges fell to its lowest in 2 years. The total balance was 21,06 billion coins in BUSD, GUSD, HSUD, DAI, USDP, EURS, SAI, sUSD, USDT, and USDC. The figure has more than halved since reaching a high of 44 billion coins in mid-December 2022.

In June, US Federal Reserve Chair Jerome Powell called stablecoins a form of money, saying his agency needs to regulate them. Earlier, the Central Bank also warned about the risks associated with stablecoins, including possible problems with the conversion of fiat currency.

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