The stablecoin industry is not doing well. Over the past 14 months, the overall market cap for this particular form of coin has fallen and this month reached its lowest level since September 2021. According to the latest Stablecoins & CBDCs report CCData’s volume is down 40.6 percent this month to a total of $460 billion.
With that volume of $460 billion, the stablecoin market is at its lowest monthly volume since December 2022. That was the month after FTX collapsed and confidence completely disappeared from the market.
Until May 22, there was this month before only $292 billion worth of stablecoins traded. If this continues in this way, the volume will drop even further in May 2023 than last month.
Although the market cap of stablecoins has fallen considerably, the dominance of the coins is increasing within the industry. Overall, stablecoins now make up about 11.1 percent of the total market.
TrueUSD (TUSD) seems to be the only stablecoin that is still doing reasonably well in terms of numbers. They scored a trading volume of USD 29 billion on the centralized exchange platforms until May 23. That leaves it only under Tether.
Time for stablecoins?
If you ask Marko Kolanovic of JPMorgan, now could be a good time to move to stablecoins. He predicted a recession in his latest report for the bank, saying now is a good time to go for assets like gold and cash.
He did not mention Bitcoin in his report, but that in itself is not surprising, given the bank Kolanovic works for. Big names like JPMorgan basically have nothing to do with Bitcoin.
But if it is up to Kolanovic, the market cap for stablecoins could start to rise again in the near future, as people seek protection against the problems that a recession will bring.