According to CryptoCompare’s latest Stablecoins & CBDCs report, as of March 20th, the overall market capitalization of stablecoins has dropped by 1.34% to $133 billion. This marks the twelfth consecutive month of decline, and it is the lowest market capitalization for stablecoins since September 2021.

The report indicates that the decrease in stablecoin market capitalization can be attributed to multiple stablecoins depegging. This depegging occurred during the collapse of Silicon Valley Bank, a cryptocurrency-friendly bank that held $3.3 billion of USDC reserves. On March 10, USDC depegged, dropping to $0.877 on March 11, as it was discovered that a portion of its reserves were in the bank. 

Following the recovery of USDC and other stablecoins' peg, the trading volume of stablecoins has surged to $51.9 billion, marking the highest daily volume recorded since November 10, which was during FTX's collapse.

Notably, the report adds that Binance's decision to resume TUSD trading pairs and the conversion of $1 billion from BUSD to TUSD and USDT resulted in an 82.6% increase in TUSD's market capitalization, bringing it to $2.04 billion.