With the global cryptocurrency market struggling with the bears seemingly in control, stablecoins are also facing a tough time.

Over the past 18 months, the stablecoin market capitalization has experienced a consecutive decline in valuation, Binance’s research division revealed.

Stablecoin Market Cap Drops to $123.8B

Citing on-chain analysis on the blockchain price tracking platform DeFiLlama, Binance Research explained that the past month saw an adverse record, setting the stablecoin market cap at $123.8 billion, the lowest since September 2021.

Despite the downtrends that have enveloped the global stablecoin market, two popular assets from this cohort – Tether (USDT) and DAI – have charted mild increases.

Keeping its leading position with a 67.2% lion’s share, the USDT stablecoin has seen a $334.7 million increase in market cap, representing a 0.4% month-on-month (MoM) uptrend. Tether’s increment is partly driven by the rising demand for the stablecoin on crypto exchanges. An analysis from earlier this week showed that the amount of USDT on exchanges has increased from 17.6% to 24.7%.

DAI, the third-largest stablecoin by market cap, has also seen commendable growth in recent times. Binance Research reveals that the MakerDAO-owned stablecoin saw a $283.4 million increase in market cap, representing a 5.4% MoM uptick.

How the Stablecoin Market Has Been Fairing

Despite the bearish trends it has experienced, the stablecoin market continues to play a vital role in the crypto space and global financial system.

This year alone, the stablecoin market cap has seen substantial increases. For example, the crash of financial banks like Silicon Valley and Silvergate was accompanied by a rise in the stablecoin business as investors flocked to these assets as a haven from the collapse of traditional institutions.

In June, the market