Total supply of stablecoins decreased for the first time in history

Analysts also noted a surge in the exchange of stablecoins for fiat money because of concerns about the insolvency of the issuers

16.06.2022 - 12:25

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What’s new? According to the CoinMetrics analytics platform, the total supply of stablecoins declined sharply in the second quarter of 2022. This is the first time in history that this figure has decreased. Meanwhile, according to CoinMetrics head of research and development Lucas Nuzzi, stablecoin exchanges for fiat also surged due to “a thirst for short-term liquidity and concerns about [issuers'] insolvency that were not present during the panic of 2020.”

22Q2 is the first time in the history of stablecoins where Total Supply decreased. Even if we exclude UST, over 10B has been redeemed *directly from the treasuries* of major issuersSome @coinmetrics data 👇 pic.twitter.com/AcCKx4Qp4z— Lucas Nuzzi (@LucasNuzzi) June 15, 2022

Which coins' supply has declined? Analysts included DAI, USDT, OMNI, USDD, SAI, USDK and PAX. The TerraUSD Project algorithmic stablecoin (UST) was not included. Nuzzi noted that among centralized stablecoins, Tether (USDT) suffered the most, down about $7 billion.

Another project that was hit hard was MakerDAO's DAI. Nearly 40% of DAI was taken out of circulation in the largest liquidation in the project's history.

On June 14, traders deposited 59 376 bitcoins ($1,26 billion at June 16 exchange rates, according to Binance) on cryptocurrency exchanges. This is the maximum inflow of BTC to the platforms since November 30, 2018.

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