The best stable coins lost $ 7 billion in May, since retailers redeem token in a lot

The best stable coins lost $ 7 billion in May, since retailers redeem token in a lot

The four largest stable coins after market capitalization have lost almost $ 7 billion from their collective supplies this month because large money dealers are trying to redeem their tokens for cash.

The StableCoins Tether (USDT), Circleusd (USDC), Binance USD (Busd) and Dai boasted almost $ 159 billion in early May.

Intensive market volatility and reduced risk tolerance given the collapse of Terra pressed this number to less than $ 152 billion-a decrease of more than 4 %.

The overpassed StableCoin Dai from Makerdao has lost most of the offer this month. According to Coingecko data, its market value was $ 8.5 billion on May 1st. Now there is a little more than $ 6.2 billion-which corresponds to a decline of 26 %.

usdt was the second hardest affected. The largest stable coin has shrunk by $ 9 billion in the previous month, which corresponds to a decline of 11 %. The price of Bitcoin fell by about 25 % during this time, while Ether broke up by 30 %.

USDT and USDC holders can exchange their tokens in a ratio of $ 1: 1 for US dollars from Tether and Circle. A low demand leads to these redeemed tokens burn.

BUSD users cannot, however, redeem their tokens directly via Binance. White-label-StableCoin-emittent paxos instead processes Busd returns. DAI is decentralized - users can only redeem token against collateral under certain emergency conditions.

USDC and Busd actually grew during market turbulence in May. The market value of USDC has increased by almost 7.5 %-from more than $ 49 billion to just less than $ 53 billion. Even though the company lost more than $ 3 billion of its market value in March and April.

The StableCoin offer of the Krypto exchange Binance has risen by 5.5 % this month; Its market value rose to $ 18.6 billion from $ 17.7 billion at the time of printing.

At the Permission Less Conference of Blockworks in Palm Beach On Wednesday, Joao Reginatto from Circle told the crowd that the StableCoin emittent had redeemed 7 billion USDC last week, which corresponds to 11 % of the total redeficatations from Circle from 2021.

But while the top stall coins shrank in May, their overall market value has still increased by 5.5 % over the course of the year after they have gained almost $ 8 billion.

USDC has grown by 20 %, with $ 10.6 billion more tokens in circulation. Busd rose by 22 % - which corresponds to growth of $ 4.2 billion. USDT has lost about $ 4.1 billion, a reduction by 5 %, while DAI has shrunk by 30 %-from $ 8.9 billion to $ 6.2 billion.

. .

The article Top StableCoins Shed $ 7b in May as Traders Speechem tokens en masse is not a financial advice.