Stablecoins Hit Milestone Not Seen Since 2022

Stablecoins have become an integral foundation of the decentralized finance (DeFi) industry as they provide stability and liquidity for investors and applications, especially in times of uncertainty and extreme volatility.

According to data from IntoTheBlock, by the second quarter of 2024, the stablecoin market cap had broken past the $160B level, a number last seen in May 2022.

Total Market Cap stablecoins
Source: IntoTheBlock

Meanwhile, data from CoinMarketCap shows that the stablecoin market cap is currently at $163.8B, with USDT dominating over 73% of the market share.

Further, the number of stablecoin transfers surged 16-fold in April after reaching a record high of $1.68T, up from $100B in October 2020.

USDT Remains King of Stablecoins

USDT, DAI, and USDC are the three stablecoin giants in the market. However, Tether’s dominance is overwhelming, as USDT alone accounts for over $110B. This is a wide gap between USDC and DAI, which have $30B and $5B, respectively.

Overall, stablecoins have seen increased adoption in multiple industries. They facilitate cross-border transactions, enhance liquidity in DeFi protocols, and allow investors to park their capital after taking profits or safeguard their portfolios in times of uncertainty. This last point was accentuated during the March-April 2024 correction, where investors reduced their Bitcoin positions.

On a similar note, CryptoMode reported that the Ethereum network has seen an increase in the circulating supply of stablecoins, reaching an all-time high in April 2024.

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