Stablecoin Market Reeling After FTX Collapse, $3.93B Leaves Exchanges

•FTX’s collapse led to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges since then.
•USDt remains the largest stablecoin by market cap, with the big four stablecoins contributing more than $130 billion to the sector’s total market cap of $138 billion.
•At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges, with Binance holding the highest amount at $24 billion.

The cryptocurrency industry has been gradually growing in strength and popularity, and along with it, its associated stablecoins have been gaining traction too. Stablecoins offer stability against cryptocurrency volatility, and as such, they have become an integral part of the industry. USDT remains the largest stablecoin by market cap, with USDC, Binance USD, and DAI making up the top 4. The entire stablecoin sector has a market cap of $138 billion, with the big four stablecoins contributing more than $130 billion to the figure.

At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges. Binance is the highest contributor to this figure, with about $24 billion in stablecoins in its reserve. Coinbase has more than $973 million, Huobi $709 million, Bitfinex $145 million, Gemini 98 million, and Gate.io $78 million.

However, the collapse of FTX has lead to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges in the last 30 days. This has been a major blow to the confidence of the market, as investors are now forced to keep their holdings on decentralized exchanges or in cold storage to ensure their assets are safe.

In light of this, the crypto industry is now looking for ways to ensure the safety of assets, and to increase the trust of investors in centralized exchanges. Whether or not these issues can be resolved in the near future remains to be seen, but it is clear that the industry is working towards a more secure future.