The total market capitalization of stablecoins fell 0.45% to $130 billion as of May 23, the lowest stablecoins market cap since September 2021 and the fourteenth consecutive month of decline.

In a reversal of a previous ruling, a court in Montenegro has ruled that Do Kwon, co-founder of Terraform Labs and former crypto mogul, is to remain in custody.

Fintech firm Ripple has acquired a minority stake in cryptocurrency exchange Bitstamp. This acquisition was overseen by digital investment firm Galaxy Digital, as revealed in a shareholder conference call with the firm.

Top stories in the Crypto Roundup today:

• Stablecoin Market Shrinks for 14th Month in a Row
• Bail Revoked for Terraform Labs Co-Founder Do Kwon in Montenegro
• Ripple Snaps Up Minority Stake in Crypto Exchange Bitstamp
• CCData Announces Addition of L2 Order Book Data to Refinitiv's Data Platforms

Stablecoin Market Shrinks for 14th Month in a Row

The total market capitalization of stablecoins fell 0.45% to $130 billion as of May 23, the lowest stablecoins market cap since September 2021 and the fourteenth consecutive month of decline.

According to CCData’s latest Stablecoins & CBDCs report, the contraction of the stablecoin market has been ongoing since March 2022. Stablecoins are digital currencies that attempt to offer investors price stability through a mechanism that allows them to remain pegged to the value of a specific asset

Most stablecoins, including leading ones USDT and USDC, are pegged to the value of the U.S. dollar by backing each token 1:1 with cash or cash equivalents in reserves.

Analysts highlight this stablecoin market contraction is of particular concern as it portends potential liquidity issues for the broader crypto market. Banking powerhouse JPMorgan stated in a report last week that until the stablecoin market ceases its contraction, a sustained recovery in cryptocurrency prices remains unlikely.

Similarly, an earlier report from global investment bank Goldman Sachs equated the shrinkage of the stablecoin market to a form of quantitative tightening for the cryptocurrency market, hinting at declining liquidity and leverage.

Trading volume with stablecoins also fell significantly this month, dropping 40.6% to $460 billion on centralized exchanges, the lowest monthly volume since December 2022, per the CCData report.

TrueUSD (TUSD) has bucked the trend, with its trading volume surging to $29 billion this month, surpassing that of USDC and BUSD.  Leading cryptocurrency exchange, Binance, has played a significant role in TUSD’s success, as it promoted it on its platform through zero-fee trading pairs.

Bail Revoked for Terraform Labs Co-Founder Do Kwon in Montenegro

In a reversal of a previous ruling, a court in Montenegro has ruled that Do Kwon, co-founder of Terraform Labs and erstwhile crypto mogul, is to remain in custody.

The high court in Podgorica, the capital of Montenegro, overturned a previous lower court decision that granted Kwon bail.

The ruling has also been extended to Han Chong-joon, the former chief financial officer who worked alongside Kwon. Earlier this month, both men received the green light from the Basic Court in Podgorica to be released on bail, set at 400,000 euros ($430,500).

However, the prosecution swiftly challenged this ruling, thereby pushing the case to the higher court for deliberation.

CCData Announces Addition of L2 Order Book Data to Refinitiv's Data Platforms

CCData is proud to announce the addition of its Level 2 (L2) Order Book data, - a comprehensive collection of outstanding buy and sell orders for an asset - on Refinitiv’s Data Platforms. This will allow institutional investors to access high-quality, trusted digital asset Order Book data, which covers 99.8% of the industry.

This expanded dataset joins CCData’s existing suite of offerings on Refinitiv’s platform, including real-time and historical aggregated market data as well as full trading data from various licensed exchanges.

This is an important step in the convergence of the traditional and digital asset markets, showcasing the growing acceptance and demand for high-quality data sets that bridge the gap between digital assets & traditional finance.

CCData’s order book snapshots are constructed once per minute per exchange to deliver highly reliable and granular data sets. Unlike other providers, CCData takes the maximum depth possible on both bid and ask sides to synthesise full order book snapshots for any integrated exchange.

For more information on our suite of data, indices and research solutions, please visit ccdata.io

Ripple Snaps Up Minority Stake in Crypto Exchange Bitstamp

Fintech firm Ripple has acquired a minority stake in cryptocurrency exchange Bitstamp. This acquisition was overseen by digital investment firm Galaxy Digital, as revealed in a shareholder conference call with the firm.

Ripple's new share acquisition was previously owned by Pantera Capital, an American digital asset investment firm. Until 2018, Pantera was one of the most significant shareholders in Bitstamp, when the exchange was bought by Belgian investment firm NXMH in an all-cash deal. The firm was then valued at $60 million.

Pantera, which had invested $10 million in Bitstamp in 2014, also sold a portion of its stake to NXMH. The specifics of the deal, including the exact sum Ripple paid for the acquisition and the deal's structure, weren’t disclosed.

Established in 2011, Bitstamp has the distinction of being among the earliest crypto exchanges offering digital assets transactions. From its base in Luxembourg, the company caters to clients across more than 100 countries.

Ripple and Bitstamp have a history of collaboration, as the exchange has previously served as a gateway for the XRP token. Bitstamp is the second largest XRP market, behind Binance.

State of the Crypto by Top Tier Exchange Volume

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