Stablecoin market hits record capitalisation
Stablecoin market surges to $224 billion, led by USDT and USDC.
The stablecoin market has surged to a record $224 billion, with USDT and USDC at the forefront of this explosive growth.
USDC is steadily gaining ground against its peers, even as overall market activity remains robust.
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Key Takeaways
- Record Market Cap: The stablecoin market has risen over 84% from $121.18 billion in August 2023 to $224 billion, with USDT and USDC contributing the most.
- USDT Dominance vs. USDC Growth: While Tether’s USDT leads with a $139 billion market cap, USDC’s market is rapidly expanding, now close to hitting $55 billion.
- Trading Volume and Circulation: The market’s trading volume has surged to $112 billion, and USDC has seen a 78% year-over-year growth in circulation.
- Regulatory Impact: Changes in the European market, driven by the EU’s MiCA regulations, have prompted Crypto.com to delist several major stablecoins, including USDT and USDC.
Stablecoin Market Growth Soars
According to CoinMarketCap, the stablecoin market has experienced a significant boost, rising by over 84% from August 2023’s $121.18 billion to reach a peak of $224 billion. The market cap has increased modestly by 0.14% in the last 24 hours, with trading volume surging by 16% to $112 billion, indicating strong investor activity and renewed interest in stablecoins.
Stablecoins market capitalizsation. Source: coinmarketcap.com
USDT and USDC: Leaders in the Space
Tether’s USDT currently holds the largest market share at $139 billion, maintaining its dominant position in the stablecoin landscape. Meanwhile, USDC is rapidly expanding its market presence, with its market cap climbing from $24.1 billion on November 14, 2023, to $53.33 billion—a remarkable 120% increase.
Recent on-chain data from Circle shows that USDC circulation grew by approximately 1.2 billion tokens in just seven days, underscoring its rising popularity, especially after significant altcoin sell-offs were converted into USDC.
Market Dynamics and Regulatory Shifts
Alphractal attributes part of USDC’s growth to investor shifts during periods of altcoin declines, suggesting that as overall stablecoin dominance declines, new market highs could be reached. However, both USDT and USDC may face headwinds in Europe following Crypto.com’s decision to delist them in compliance with the EU’s Markets in Crypto-Assets (MiCA) regulations.
In addition to USDT and USDC, other tokens such as Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), and PayPal USD (PYUSD) have also been delisted, though users are allowed withdrawals until the end of Q1 2025.
Recently we wrote, that Circle minted over $5 billion USDC on the Solana blockchain in just one week, pushing its marketcap to $52 billion.
