Market size of algorithmic stablecoin up until June 21, 2022

TerraUSD spearheaded the movement for algorithmic stablecoins by itself, up until its crash in May 2022. That month, the system that tried to maintain its price stability by automatically creating (minting) more of its own cryptocurrency - Terra (LUNA) - created such a big supply of LUNA that the TerraUSD price collapsed, briefly sparking fears of a crypto market crash. The proof of concept behind this relatively new group of stablecoins, algorithmic stablecoins, is important for Decentralized Finance or DeFi, as it would nearly guarantee a stable digital coin - as the algorithm would try to keep the price at close to $1 as much as possible - and that is not affected by market sentiment. Uncertainty remained in June 2022, however, as the newly-launched USDD stablecoin from one of the largest blockchains in DeFi, Tron, did not keep its supposed value of one USD for several days - reaching a price of 93 cents instead. Algorithmic stablecoins were much smaller in size compared to the top cryptocurrencies in the world in June 2022.