Stablecoin market approaches $200 billion
Stablecoin market is growing
The supply of stablecoins in the cryptocurrency market has reached a new record, with their total market capitalization nearing $200 billion. Tether (USDT) remains the leader.
According to DefiLlama, the stablecoin market cap grew by 46% in 2024, reaching $192.56 billion. Tether (USDT) dominates the market with a 69.70% share and a capitalization of $134.21 billion.
Circle’s USDC holds second place with a market cap of $39.7 billion. The remaining $18 billion includes algorithmic and fiat-backed stablecoins such as DAI, Ethena USD (USDe), First Digital USD (FDUSD), and others.
Stablecoin supply growth
The current crypto bull market has driven a significant increase in stablecoin supply to meet growing demand. This year's 46% rise highlights this trend, with Tether alone minting over $50 billion in USDT in the past year.
Donald Trump's pro-crypto stance following his presidential election victory has also contributed to the rise in stablecoin supply. His win is cited as a key factor behind Bitcoin’s impressive surge to $99,000. Additionally, interest in stablecoins is growing in the UK, where lawmakers aim to establish a regulatory framework for the crypto market by 2025.
Two weeks ago, stablecoin trading volume hit $1.8 trillion, marking a record high for 2024.
