Stablecoins have rapidly gained importance in the past year. Designed to maintain a stable value through their link to a traditional asset, these cryptocurrencies play a fundamental role in digital asset trading and introducing fiat currencies into blockchain systems. Another report from CCData has recently been published. CCData’s Stablecoins & CBDCs Report aims to highlight important trends within this sector. What can we learn from their report?

Continued Growth in Stablecoin Market

CCData’s February report shows continued growth in the stablecoin sector, with a 1.95% increase in the total market capitalization, which now stands at $138 billion. This is the fifth consecutive month of growth, resulting in the highest month-end market cap since December 2022. Despite the overall growth in market cap, stablecoins’ market dominance has experienced a slight decline to 7.09%, which is the lowest marks since December 2021.

MIM Stablecoin ‘Depegging’ Incident

One of the major developments that impacted the stablecoin landscape was the depegging incident of the Magic Internet Money (MIM) stablecoin. An exploit in the publisher’s smart contract, Abracadabra Money, caused the value to drop to as low as $0.86, resulting in a loss of almost $6.50 million. Despite this setback, mim’s market cap has remained stable at around $60.2 million, with the stablecoin undergoing a v3 upgrade and expanding its integration with new chains such as Blast and Berachain.

Big Increase in FDUSD Trading Volume

Following the approval of a spot Bitcoin ETF, trading volume of First Digital Labs fdusd pairs on centralized exchanges saw a major increase of 51.1% to $122 billion, making it the second most popular trading pair after usdt. The btc-fdusd pair on Binance emerged as the most traded, with a monthly volume of $80.8 billion. At the same time, fdusd’s market capitalization rose 12.5% ​​to $2.44 billion, which is a new all-time high.

Source: https://bitcoinmagazine.nl/nieuws/marktdominantie-stablecoins-historisch-laag-niveau-2021



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