The recent collapse of UST has wiped $25 billion off the Total Market Capitalisation of all stable coins....
Terra had seen a rapid increase in popularity through 2022, and by early May it had actually taken over BUSD as the number 3 stable coin by TMC, accounting for 10% of the stable coin market.
But not any more!
With the rapid sell off of UST it is now back down below FRAX and MIM, representing only 1% of the TMC of all stables. (CoinMarketCap)
And it could go lower, once (if?) the Terra Chain becomes operational again.
Stables Market May 13th 2022
Two months ago...
The massive $25 billion decline suggests that most of that UST money has cone to either other cryptos (probably Bitcoin mainly) or just plain OUT to fiat.
For the UST that has been exchanged for other cryptos, USDT is the main gainer, now back up to 50% market dominance, aND slight gains for USDC and also for BUSD.
So for now it's a return to the centralised stable coin folks!
Change in Stable coins by Market Dominance
| Coin | 13th May 2022 | Mid-March 2022 |
|---|---|---|
| USDT | 50% | 44% |
| USDC | 32% | 29% |
| TERRA | 1% | 8% |
| BUSD | 11% | 10% |
| DAI | 4% | 5% |
| FRAX | 1.5% | 1.5% |
| MIM | 1.5% | 1.5% |
| OTHERS | 2% | 3% |