The stablecoins boom is nearing its end as $15B stablecoins left exchanges in the last 4 months alone,putting the balance back to early 2022 levels.

The last year was probably one of the most “event-full“ years in Crypto history and one thing it will ebe remembered for is the peak of the Stabelcoins boom phase and the resulting Stablecoins War. One year ago all the talk was about LUNA‘s UST which was meant to be a game-changer, we all know how that ended…

But however, the year 2022 was the year of the Stabelcoins boom as over $15B of stablecoins were added that year alone to the exchanges, with the peak being $45B worth of stablecoins on exchanges alone. The peak of it being just before the FTX collapse in November 2022.

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Stablecoin balance on Exchanges by analyst James V. Straten

Since then, $15B of that has been withdrawn from exchanges or possibly even burned. Thats a 33% reduction and all of the gains made in 2022, the stablecoins boom, were reversed. Now “only“ $30B worth of stablecoins sit on exchanges, with the trend still being in a free-fall.

It is true that stablecoins will always be a part of Crypto and especially they are needed in DeFi, I was also once on an other opinion but realised that this is much more true. But that does not mean that all kind of stablecoins should be on exchanges, especially as some exchange-made stablecoins are printed out of thin air.

Those are my two sats, be free to lay down your opinion in the comments.