The year 2022 saw the crypto market experience a substantial loss in the stablecoin asset class. The total market capitalization of all stablecoin economies dropped by more than $28 Billion. Additionally, the last 23 days have seen over $3 billion wiped from the stablecoin economy, with BUSD losing 23.3% of its value in the same period.

Over $3 Billion USD Wiped From Stablecoin Economy in 23 Days

Data from the start of January 2022 shows that the stablecoin economy was worth $167.08 billion. This has since dropped to $139.06 billion, representing a decrease of 16.77% from the week prior.

Tether (USDT) was valued at $77.14 billion in January 2022, but has since dropped to $66.25 billion. Meanwhile, USDC was worth $42.74 billion 14 months ago and is currently worth $44.28 billion. BUSD was valued at $14.28 billion on January 5, 2022 and is now worth more than $17.16 billion.

This month alone, the stablecoin market has lost $3.08 billion in value, dropping from $142.07 billion to $138.99 trillion. Makerdao’s DAI stablecoin had a market valuation of $9.07 billion on January 5, 2022 and is now worth $5.12 billion, representing an increase of 43.55%. Other stablecoins include the FRAX, True USD, USD and Gemini Dollar tokens.

In Addition to Terrausd, USD, HUSD and FLEXUSD Lose $1 Peg

Magic Internet Money, Liquidity and the Fei USD were among the tokens that lost their $1 peg. Neutrino USDN coins, which were once stable, are now trading at $0.448/unit on November 7, 2022.

USDT had a market capitalization of $77.14 billion in January 2022 and has since dropped by $10.89 billion. USDC has gained $1.54 billion in the same period. The total market capitalization for all stablecoin

The crypto and ICO markets have experienced a significant loss in value in the past year, with a recent report showing that $28 billion was wiped from the stablecoin economy in 2022. The decline in value of certain dollar-pegged tokens, such as HUSD and FLEXUSD, is largely to blame for the loss.

On December 5th of this past year, stablecoins accounted for 56.61% of all cryptocurrency trading volume, with a total of $60.74 billion in trade. However, by December 28th, the total trade volume had dropped to $37 million, with stablecoins accounting for 80.86% of all transactions.

The HUSD token was one of the most notable casualties of the stablecoin market crash, depegging from the $1 peg on October 27th of 2022 and now trading at just $0.14 per unit. Similarly, FLEXUSD also lost its dollar peg, trading at $0.25 an unit after depreciating from $1 in June of 2022.

These losses raise questions about the future of the stablecoin economy. What will be the long-term effects of this crash on the crypto and ICO markets? Is there anything that can be done to prevent a similar crash in the future? For now, the crypto community await answers to these questions as the stablecoin economy looks to recover from its losses.