{"id":346609,"date":"2023-08-02T18:30:18","date_gmt":"2023-08-02T17:30:18","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=346609"},"modified":"2023-08-02T13:10:40","modified_gmt":"2023-08-02T12:10:40","slug":"inside-stablecoin-supply-dynamics-as-tusd-shakes-up-the-market","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/inside-stablecoin-supply-dynamics-as-tusd-shakes-up-the-market\/","title":{"rendered":"Inside stablecoin supply dynamics as TUSD shakes up the market"},"content":{"rendered":"<p>Understanding the dynamics of stablecoin supplies is a crucial aspect of crypto market analysis, as stablecoins play a pivotal role in the cryptocurrency ecosystem.<\/p>\n<p>Fluctuations in the market cap of these pegged assets can signal shifts in investor sentiment, liquidity changes, and overall market health.<\/p>\n<p>In 2023, the stablecoin market witnessed a significant shift, with <a href=\"https:\/\/cryptoslate.com\/coins\/tether\/\">Tether (USDT)<\/a> and <a href=\"https:\/\/cryptoslate.com\/coins\/true-usd\/\">TrueUSD (TUSD)<\/a> emerging as market leaders.<\/p>\n<p>The supply of USDT reached an all-time high of $83.81 billion on July 31, surpassing its previous peak of $83.16 billion in May 2022. This represents a substantial growth of 26.50% since the beginning of the year.<\/p>\n<figure id=\"attachment_346661\" aria-describedby=\"caption-attachment-346661\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-346661\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd.png\" alt=\"usdt supply ytd\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdt-supply-ytd-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-346661\" class=\"wp-caption-text\">Graph showing USDT supply YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=USDT&category=Supply&m=supply.Current&s=1672527600&u=1690890754&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p>TUSD also reached its peak on June 26, with a supply of $3.14 billion. The recent surge, as previously <a href=\"https:\/\/cryptoslate.com\/could-a-new-surge-in-tusd-supply-trigger-another-btc-rally\/\">analyzed<\/a> by CryptoSlate, pushed TUSD's supply back above $3 billion, currently standing at $3.05 billion. TUSD's supply has grown by almost 300% since the start of the year.<\/p>\n<figure id=\"attachment_346667\" aria-describedby=\"caption-attachment-346667\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-346667\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply.png\" alt=\"tusd stablecoin supply\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/tusd-stablecoin-supply-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-346667\" class=\"wp-caption-text\">Graph showing TUSD supply YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=TUSD&category=Supply&m=supply.Current&s=1672527600&u=1690890754&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p>However, other major stablecoins have experienced a sharp drop in their supplies. Despite a significantly higher supply than TUSD, <a href=\"https:\/\/cryptoslate.com\/coins\/usd-coin\/\">USDC<\/a> has experienced a 40% decrease since the beginning of the year, with its current supply standing at $26.51 billion.<\/p>\n<p>The drop was exacerbated in March when USDC briefly de-pegged, trading as low as $0.97. A de-pegging event, where a stablecoin deviates from its pegged value, can indicate market instability and erode trust in the asset.<\/p>\n<figure id=\"attachment_346666\" aria-describedby=\"caption-attachment-346666\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-346666\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply.png\" alt=\"usdc stablecoin supply\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/usdc-supply-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-346666\" class=\"wp-caption-text\">Graph showing USDC supply YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=USDC&category=Supply&m=supply.Current&s=1672527600&u=1690890754&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p><a href=\"https:\/\/cryptoslate.com\/coins\/multi-collateral-dai\/\">DAI<\/a>, another prominent stablecoin, also experienced a de-peg at the same time, but its supply initially increased. However, this increase was short-lived, and the downward trend quickly re-established. The supply dropped from $5.75 billion at the beginning of the year to $4.57 billion on July 31, representing a 20% decrease.<\/p>\n<figure id=\"attachment_346664\" aria-describedby=\"caption-attachment-346664\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-346664\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd.png\" alt=\"dai supply ytd\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/dai-supply-ytd-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-346664\" class=\"wp-caption-text\">Graph showing DAI supply YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=DAI&category=Supply&m=supply.Current&s=1672527600&u=1690891477&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p>The most significant decrease in supply was seen in <a href=\"https:\/\/cryptoslate.com\/coins\/binance-usd\/\">Binance USD (BUSD)<\/a>, a stablecoin linked to the Binance exchange. The supply reduced by over 77%, dropping from $16.50 billion at the beginning of the year to $3.69 billion on July 31.<\/p>\n<p>Due to a pending lawsuit filed by the United States Securities and Exchange Commission (SEC), Paxos has <a href=\"https:\/\/cryptoslate.com\/sec-alleges-binance-sent-paxos-nearly-20b-in-commingled-funds-via-merit-peak-in-2021\/\">stopped the issuance<\/a> of the BUSD stablecoin, <a href=\"https:\/\/paxos.com\/busd-transparency\/\">stating<\/a>, &#8221; Paxos no longer mints new BUSD, but allows customers to redeem BUSD for USD or convert their BUSD to USDP,&#8221;<\/p>\n<figure id=\"attachment_346662\" aria-describedby=\"caption-attachment-346662\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-346662 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd.png\" alt=\"busd ytd\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/busd-supply-ytd-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-346662\" class=\"wp-caption-text\">Graph showing BUSD supply YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/metrics?a=BUSD&category=Supply&m=supply.Current&s=1672527600&u=1690891477&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p>These shifts in stablecoin supplies underscore the dynamic nature of the crypto market. The rise of USDT and TUSD, coupled with the decline of other major stablecoins, may signal a change in investor preference and trust, with more capital flowing to assets investors and traders deem safer or more liquid.<\/p>\n<table>\n<thead>\n<tr>\n<th>Rank<\/th>\n<th>Name<\/th>\n<th>Ticker<\/th>\n<th>Market Cap<\/th>\n<th>24H Vol<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Tether<\/td>\n<td>USDT<\/td>\n<td>$83,801,671,209<\/td>\n<td>$22,547,202,621<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>USD Coin<\/td>\n<td>USDC<\/td>\n<td>$26,446,685,467<\/td>\n<td>$3,399,720,920<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Dai<\/td>\n<td>DAI<\/td>\n<td>$4,558,160,395<\/td>\n<td>$212,842,536<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Binance USD<\/td>\n<td>BUSD<\/td>\n<td>$3,667,705,148<\/td>\n<td>$1,662,534,530<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>TrueUSD<\/td>\n<td>TUSD<\/td>\n<td>$3,014,429,130<\/td>\n<td>$2,937,994,931<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Understanding the dynamics of stablecoin supplies is a crucial aspect of crypto market analysis, as stablecoins play a pivotal role in the cryptocurrency ecosystem. Fluctuations in the market cap of these pegged assets can signal shifts in investor sentiment, liquidity changes, and overall market health. In 2023, the stablecoin market witnessed a significant shift, with [&hellip;]<\/p>\n","protected":false},"author":759,"featured_media":347074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77921,32631],"tags":[76800,76827,78241,75695,78031,76824,72860],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inside stablecoin supply dynamics as TUSD shakes up the market<\/title>\n<meta name=\"description\" content=\"CryptoSlate explores the changing stablecoin supply dynamics among the top five stablecoins by market capitalization.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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