Here’s the full scope of UST’s de-pegging on the stablecoin market

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Here's the full scope of the impact of UST's de-pegging on the stablecoin market

in May, never-before-seen attention has since been placed on stablecoins. In fact, there are many who still harbor doubts about the ‘stability’ of this class of cryptocurrency assets., algorithmic stablecoins have seen the most growth over the past year. Algorithmic stablecoins, including Ampleforth, USDD, Frax, Alchemix, and even the collapsed UST, have logged a collective hike of 115.22 %. Fiat-collateralized stablecoins, on the other hand, have appreciated by 29.28 % over the same period.

For crypto over-collateralized stablecoins, supply over the past year was pegged at 8,585,410,440. With 97,074,596,562 logged as total supply this past year, fiat-collateralized stablecoins led the pack with the most supply. The reason for this is not far-fetched. Centralized bodies float this category of stablecoins, and they have stronger reserves.Furthermore, with 90% of the total market share, fiat-collateralized stablecoins are the most used in this category of cryptocurrency assets.

With a reading of 0.029 at press time, the velocity for algorithmic stablecoins has dropped by over 500% since May.According to Dune Analytics, fiat-collateralized stablecoins have a total supply of $97,074,596,562, with $95,456,754,764 as the available supply. Leading centralized stablecoins include Tether USDT , USD Circle , True USD , Paxos Standard , and Binance USD .

 

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