According to a study conducted by CryptoCompare, the share of algorithmic stablecoins in the stablecoins segment fell from 12.4% shortly before the Terra USD crash in April 2022 to 1.71% today.
According to the company's analysts, UST accounted for 79.8% of the algostablecoins market at its peak.
Overall, the market capitalization of stablecoins has declined for the tenth consecutive month. In particular, in December, centralized platforms recorded an outflow of $3.65 billion worth of tokens allegedly due to doubts about Binance's solvency.
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The company's analysts have explained:
"The decline in stablecoin dominance suggests market participants are rotating out of stablecoins and into risk assets."
It is worth noting that USDT maintains its leading position with a market share of 48.7%, the highest since October 2021.