Stablecoins Save Crypto Market from Collapse
The crypto market suffered a significant decline in value over the past year, losing $2.1 trillion, but on-chain activity remained relatively resilient.
A recent report by Chainalysis found that global crypto economic activity generated about $9.4 trillion in activity during the 12 months through June 30, down from $9.5 trillion a year earlier.
This divergence marks a shift in where activity occurs during market downturns, with value received by exchanges and decentralized-finance protocols falling 4.3% to $8.9 trillion, while transfers directly between personal wallets within countries surged to $228.7 billion from $56.8 billion.
The growth of stablecoins played a significant role in this resilience, with inflows of dollar-pegged tokens into crypto services increasing 5.3%, even as overall service receipts declined.