The total market capitalization of stablecoins saw a significant contraction to $123.8 billion in September, as reported by CCData. This represents a lowest point since August 2021, when thesector was valued at $137.9 billion. Stats revealed a concurrent 28.4% drop in stablecoin trading volumeon centralized exchanges, back to the lowest monthly trading volume since July 2020. Speculations attributed the decline to scandals and bankruptcies in 2022 majorply eroding the stablecoin sector.
Tether (USDT), with its current towering 67.3% market share, was the aiming the sector swerving its stagnation. Contrastingly, USD Coin, BUSD, and other tokens ell project a general trend of shrinkage. Notwithstanding, PayPal, came with a predictably unpredictable move to utilize PayPal USD (PYUSD) for payments and transfers – backed resolutions-wise by U.S. dollar deposits andother similar assets. Thus with all this surprise element, the overall digital asset sector remains as vulnerable to the occurences, unaffected by PayPal’s entrance into stablecoins.