First Digital USD soars on Binance as overall stablecoin market sinks to two-year low – CryptoSlate

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The global crypto market cap is $1.15 trillion with a 24-hour volume of $32.04 billion. The price of Bitcoin is $29,107.08 and BTC market dominance is 49.2%. The price of Ethereum is $1,820.39 and ETH market dominance is 19.0%. The best performing cryptoasset sector is eCommerce, which gained 30%.
Tether’s USDT supply, for example, contracted for the first time since last October.
Cover art/illustration via CryptoSlate
The total market cap of stablecoins has been on a continuous decline for 17 months, now standing at $124 billion, its lowest level since August 2021, according to CCData.
The data aggregator highlighted a broader impact of the decline in stablecoin’s monthly trading volume. Notably, July saw this volume plummet to its second-lowest point this year, at $453 billion.
CCData attributed this significant downturn to the subdued market dynamics observed in Bitcoin and Ethereum. These two major cryptocurrencies have experienced an unusual period of reduced volatility, reaching levels not seen in multiple years.
The firm continued that the trend could continue into August. However, it noted that the myriads of spot ETF applications before the U.S. Securities and Exchange Commission (SEC) could catalyze the market.
The blockchain analytics firm Kaiko stated that this year, the overall trade volume of stablecoins on centralized exchanges had crossed the $4 trillion mark
Tether (USDT) leads the pack, contributing more than $2.8 billion of the volume, while embattled Binance USD (BUSD) and Circle’s USD Coin (USDC) recorded $898 billion combined.
Despite the overall market decline, the circulating supply of Binance-listed First Digital USD (FDUSD) skyrocketed by 1410% to $305 million, less than a month post its launch on the crypto exchange
In July, a Binance spokesperson told CryptoSlate that the firm was pushing the asset because it believes its customers would benefit from more stablecoin choices in the market. Since then, the exchange has introduced several features designed to incentivize its usage on the platform.
Of the $305 million, 280 million were issued on Ethereum (ETH), while the $25 million balance was minted on the Binance-backed BSC Chain network, as per data from DeFillama.
Meanwhile, USDT’s supply declined for the first time since last October by 0.62% to $83.3 billion as of the end of July. However, it remains the dominant stablecoin in the space, with its market dominance currently at 67.16% as of press time.
Tether’s USDT has been one of the best-performing digital assets in the current year, with its supply rising to an all-time high amid the issues plaguing its rivals like BUSD and USDC.
The stablecoin company has also maintained a healthy balance sheet, reporting substantial profits during the first two quarters of the year and intending to invest in BTC.
Across other stablecoins, CCData stated that USDC’s supply fell for the eighth month to $25.8 billion, while BUSD and TrueUSD’s (TUSD) market plunged to $3.37 billion and $2.75 billion, respectively.
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Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
FDUSD is a 1:1 USD-backed Stablecoin.
BUSD is a stablecoin issued by Paxos in partnership with Binance..
TrueUSD, a USD-backed stablecoin you can exchange and trust.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Tether Limited is the company that introduced Tether (USDâ‚® or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
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