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The first quarter of 2023 has been an eventful period for the stablecoin market, with significant changes in liquidity pool dynamics and market shares. We will dive into the key events that shaped the market this quarter, highlighting the most prominent trends and developments.

Curve 3Pool loses its dominance 📉:
In a surprising turn of events, the once leading stablecoin liquidity pool, Curve 3Pool, experienced a decline in total value locked (TVL) from over $600M to $430M in Q1 2023. This shift in market dynamics has led to a change in the top stablecoin liquidity pool.

Curve Frax/USDC emerges as the new leader 🚀:
The Frax/USDC pool, long a contender, now holds the top spot among stablecoin liquidity pools with a TVL of $494M. This change signifies a shift in the stablecoin market as new players continue to emerge and challenge the status quo.

USDT considered a safe haven? 🏝️:
USDT was purchased from 3Pool and maintained under 10% of the pool for over 3 weeks during this quarter. This may indicate a growing confidence in USDT’s stability and its potential role as a safe haven in the stablecoin market.

DAI/USDC pool affected by USDC depegging 📉:
The leading Uniswap stablecoin pool, DAI/USDC, experienced a 50% drop in TVL following the USDC’s withdrawal. The TVL dropped from approximately $230M to $110M. This event had a significant impact on the stablecoin market and is likely to have lasting effects.

Uniswap USDC/TUSD pool diminishes, TUSD market cap rises 🌪️:
While the USDC/TUSD pool nearly vanished after March 12th, TUSD’s market cap nearly doubled. TUSD was initially bought out of the pool, reflecting confidence in the asset and its potential for growth in the stablecoin market.

USDT’s market share expands 📈:
USDT started 2023 with approximately 48% of the stablecoin market cap but closed Q1 with over 60%. This increase in market share raises the question of whether Tether’s dominance will continue to grow in the coming quarters.

Q1 2023 has proven to be a dynamic period for the stablecoin market, with several noteworthy events and trends shaping the landscape. As the stablecoin market continues to develop and evolve, it will be crucial for investors and market participants to stay informed and prepared for further changes.