Stablecoins haven’t generally rallied as bitcoin prices approached all-time highs this year. Ratings agency Fitch noted in a report that stablecoin trading volumes are low compared to the industry’s total market capitalization.
The Block’s data dashboard shows that the total supply of stablecoins has dropped from $138 billion at the beginning of the year to $124 billion on July 3.
The monthly average daily trading volume of the top ten stablecoins dropped from $53 billion in March 2023 to $28 billion in May. However, Fitch noted that assets backing stablecoins have better liquidity.