TerraUSD spearheaded the movement for algorithmic stablecoins by itself, up until its crash in May 2022. That month, the system that tried to maintain its price stability by automatically creating (minting) more of its own cryptocurrency - Terra (LUNA) - created such a big supply of LUNA that the TerraUSD price collapsed, briefly sparking fears of a crypto market crash. The proof of concept behind this relatively new group of stablecoins, algorithmic stablecoins, is important for Decentralized Finance or DeFi, as it would nearly guarantee a stable digital coin - as the algorithm would try to keep the price at close to $1 as much as possible - and that is not affected by market sentiment. Uncertainty remained in June 2022, however, as the newly-launched USDD stablecoin from one of the largest blockchains in DeFi, Tron, did not keep its supposed value of one USD for several days - reaching a price of 93 cents instead. Algorithmic stablecoins were much smaller in size compared to the top cryptocurrencies in the world in June 2022.
Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022
(in billion U.S. dollars)
No figures are available from before December 2020; The chart is interactive: Clicking on the coin names allows for filtering figures per individual stablecoin
Supplementary notes
* FRAX is only partially a USD-backed stablecoin as it also uses an algorithm for its backing. It has nevertheless been added to this statistic, due to its market size. Tron's USDD started out as a purely algorithmic stablecoin in May 2022 - and has therefore been added as such - but technically it changed to a model similar to FRAX not long after.
Monthly figures are as of the end of that particular month.
Figures have been rounded.
Note that due to changing exchange rates, the USD values as reported can change from day to the next. This also applies in retrospect.
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Statista. (June 22, 2022). Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022 (in billion U.S. dollars) [Graph]. In Statista. Retrieved November 13, 2024, from https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/
Statista. "Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022 (in billion U.S. dollars)." Chart. June 22, 2022. Statista. Accessed November 13, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/
Statista. (2022). Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022 (in billion U.S. dollars). Statista. Statista Inc.. Accessed: November 13, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/
Statista. "Estimate of The Market Capitalization of Algorithmic Stablecoin from December 2020 to June 21, 2022 (in Billion U.S. Dollars)." Statista, Statista Inc., 22 Jun 2022, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/
Statista, Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022 (in billion U.S. dollars) Statista, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/ (last visited November 13, 2024)
Estimate of the market capitalization of algorithmic stablecoin from December 2020 to June 21, 2022 (in billion U.S. dollars) [Graph], Statista, June 22, 2022. [Online]. Available: https://www-statista-com.ezproxy.canberra.edu.au/statistics/1316227/algorithmic-stablecoin-market-value/
