This month, the total market capitalization of the stablecoin sector within the cryptocurrency space fell 0.45% to $130 billion, its lowest level since September 2021, marking the fourteenth consecutive month of decline.
According to the latest Stablecoins & CBDCs report from CCData, stablecoin trading volumes fell 40.6% this month to 460 billion, the lowest monthly trading volume since December 2022. According to the report, as of May 22, only $292 billion had been traded, with volumes on track to be even lower.
According to the report, while total stablecoin market capitalization fell this month, stablecoin dominance within cryptocurrency increased to 11.1% as the crypto market contracts and major cryptocurrencies remain range-bound after failing to break through key resistance levels.
TrueUSD (TUSD) defied the bearish trend, with $29 billion in trading volume on centralized trading platforms as of May 23, making it the second-largest stablecoin by trading volume after BUSD and USDC. Because of rising demand and liquidity, the stablecoin is now worth $1.208.
While USDT balances on centralized cryptocurrency trading platforms have returned to pre-FTX collapse levels of $9.33 billion, USDC and DAI balances on these platforms have dropped to their lowest level since March 2021, according to the report.
The report comes at a time when JPMorgan’s chief global markets strategist Marko Kolanovic has advised investors to rethink their portfolios in light of global recession fears, advising investors to reduce their stock holdings and diversify into cash and gold as a precautionary measure.
Kolanovic recently expressed concerns in a memorandum about this year’s stock rally, which has seen a nearly 10% rise.
His remarks were accompanied by dissatisfaction with the Fed Funds futures, which predict multiple interest rate cuts by the end of the year. According to Kolanovic, such a scenario is unlikely to herald bullish trends. Such cuts are typically implemented in response to a severe economic downturn or a jolt to the financial markets.
Notably, Poland’s central bank accumulated 14.8 tonnes of gold in April, indicating the country’s proactive response to economic uncertainty.
According to the report, the country’s gold’s net worth, including gold deposits and swapped gold, increased to a substantial $15.52 billion in April, up from $14.55 billion the previous month.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.