The world of cryptocurrency has been shaken up in recent weeks following the SEC’s charge against the stablecoin issuer, Tether. The impact of this charge on various stablecoins has been the subject of much speculation, but recently released data sheds some light on the state of some of the most popular stablecoins in the market.
According to a report by CryptoQuant, stablecoin BUSD has seen a total of $3 billion worth of redemptions since PAXOS declared that it would stop minting the stablecoin on February 13. In addition, the amount of BUSD held in exchange reserves has fallen by 21%, representing a significant drop in value.
Meanwhile, PAXOS’s native stablecoin, USDP, has seen redemptions rise by around $100 million during the same time period. As a result, the USDP’s exchange reserves have fallen by a staggering 67%, or $150 million.
Circle’s USDC has also been subject to significant redemptions, totaling $3.8 billion. However, despite this, the USDC’s exchange reserves have actually grown by 57%, equivalent to $1.6 billion. Tether, on the other hand, has not seen many redemptions in comparison to its market value, and its exchange reserves have remained relatively stable throughout the course of this time period.
In terms of market capitalization, both USDT and USDC have absorbed the majority of the value lost by the US dollar. This is likely due to the fact that they are two of the most popular stablecoins in the market, with a combined market capitalization of over $90 billion.
Overall, the impact of the SEC’s charge on stablecoins has been mixed, with some stablecoins seeing significant redemptions and others remaining relatively stable. It remains to be seen how this situation will develop in the coming weeks and months, but it is clear that stablecoins are a crucial part of the cryptocurrency ecosystem and will continue to play an important role in the future.
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