Around 7 billion USDC stablecoins have been removed from circulation in the last 11 days, with the majority of the redemptions taking place after the depegging event of USDC on March 11, 2023. In addition, 439.48 million BUSD stablecoins have been redeemed overall since March 6.
Depegging Of Stablecoin Leads To Billions In Redemptions
After a stablecoin depegging event occurred on March 11, the stablecoin ecosystem saw substantial changes this month. During this period, the price of USDC fell to a low of $0.877 per coin, and on the same day, a dozen other stablecoins also lost their connection to the value of the US dollar. While Circle's stablecoin is now trading at $1 on different controlled trading platforms on Friday, USDC and the other stablecoins have since been re-pegged. Over 43.89 billion USDC were in circulation on March 6; as of today, March 11, 7,089,389,744 of those USDC had been redeemed.
Metrics as of March 17, 2023 indicate that the amount of USDC in circulation has dropped by 10.2% over the previous 30 days. The stablecoin market stats on coingecko.com show that there are presently about 36.80 billion USDC stablecoins in circulation. The USDC transaction volume over the previous 24 hours was $6,328,716,602, which was double the level seen today during the depegging event. The 24-hour trade volume for BUSD has just surpassed that of USDC, the third-largest stablecoin trade volume.
Data from multiple exchanges indicated that BUSD had a 24-hour global trade volume of $8,289,546,285 on Friday afternoon (ET). On March 6, 11 days ago, a snapshot taken by archive.org shows that 439,484,014 BUSD has been redeemed. Around 8,689,408,012 BUSD were in use at that time; as of present, only 8,249,923,998 are still in use. Nansen's proof-of-reserve data shows that Binance has 7.42 billion BUSD in its possession. The number of BUSD in circulation has declined by 46.3% during the last 30 days, in line to stablecoin market statistics from Coingecko.com.
As the stablecoin economy lost 7.528 billion USDC and BUSD, the amount of tether (USDT) coins in circulation increased by 8.7%. Tether is the largest stablecoin by market capitalization. With 75.17 billion USDT in circulation, the current market worth of Tether is roughly $75.29 billion. In terms of 24-hour resolved trades, tether outperformed every other coin in the whole crypto industry on Friday with a global trade volume of $80.38 billion. The second- and third-largest stablecoin volumes are held by BUSD and USDC, respectively.
