Global stablecoin assets have declined for the first time, according to quarterly data compiled by Fitch Ratings, as part of the effects of the de-pegging of TerraUSD.
The market grew by 15% in the first quarter of the year to $188 billion, only to reverse those gains following the TerraUSD crypto crash on 11 May.
Stablecoin assets were $162 billion as at 30 May. It is the first “sustained and substantial decline”, a Fitch Ratings report said.
“Reserve portfolios are generally becoming more conservative,” Chloé Andrieu, a senior analyst at Fitch in London, said. “However, the events surrounding TerraUSD highlight certain sensitivities.”
She said Fitch expects to see increasing conservatism in the portfolios, with some adopting a similar risk profile to regulated money market funds.
The eight largest stablecoins had an aggregated market capitalisation of $154 billion at May 30 and accounted for around 96% of the total market, according to MarketCoinCap.
The number of such coins had increased to 100 from 75 during the first quarter. “New stablecoins are entering the market, with aggressive offers and large capitalisations,” Andrieu noted.
- George Russell
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