The top four stablecoins – USDT, USDC, BUSD, and DAI – collectively lost nearly $7 billion this month. At the beginning of the month, these stablecoins boasted a supply of nearly $159 billion. But Terra’s collapse sent that figure below $152 billion – a drop of more than 4%.
DAI, MakerDAO’s overcollateralized stablecoin, lost most of its supply on a percentage basis. On May 1, its market value was $8.5 billion and now, it’s just a little over $6.2 billion. This suggests a 26% decline. The second hardest hit stablecoin was USDT, which shrunk by $9 billion in the month-to-date; an 11% plunge. It should be noted that Bitcoin’s price fell around 25% and Ether by 30%. Holders of USDT and USDC can exchange their stablecoins for US dollars at a 1:1 ratio from Tether and Circle, respectively. However, BUSD users cannot redeem their tokens through Binance directly. Paxos, a white-label stablecoin issuer handles BUSD redemptions. DAI users can redeem their tokens for collateral under emergency conditions.
Data shows that USDC and BUSD have grown in May’s market lows. USDC’s market value climbed almost 7.5% from $49 billion to nearly $53 billion despite losing more than $3 billion throughout March and April. Moreover, BUSD added 5.5% so far this month. As such, its market value rose from $17.7 billion to $18.6 billion.
USDC has recorded growth of 20% with $10.6 billion more tokens in circulation. BUSD grew 22% – $4.2 billion, while USDT lost $4.1 billion.
