According to JPMorgan’s report, when Terra was excluded from the account, stablecoin volume, which peaked at $170 billion at the beginning of the year, shrank by $25 billion. According to the report from JPMorgan, since May, $25 billion has left the crypto market through stablecoins.

The term stablecoin is used for tokens whose value is pegged to the value of another asset. Fixedcoins, whose value is pegged to the dollar, act as a bridge between cash and cryptocurrencies. It is stated that the increase and decrease in the volume of stablecoins represent cash entering and leaving the digital asset market.

According to the report, before the collapse of Terra/LUNA, stablecoin volume peaked at $186 billion in May. In addition, stablecoin volume was $30 billion at the beginning of 2021, and $5 billion in 2020. Since May, stablecoin volume has shrunk by $41 billion, with about half of it due to Terra’s collapse.

When Terra is excluded from the account, it is seen that the stablecoin volume reached its peak at the beginning of 2022 with 170 billion dollars. Compared to the $165 billion entering the crypto market via stablecoins in 2020 and 2021, this outflow is relatively small. However, according to JPMorgan, unless the shrinkage in stablecoins stops, there will be no sustainable recovery in the crypto market.

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