- Stablecoins have reached an all-time high market cap of $169.57 billion, surpassing the previous peak of $167 billion in March 2022.
- Tether’s USDT and Circle’s USDC have seen significant growth this year, with PayPal’s PYUSD climbing to the fifth position.
- The rise in stablecoin market cap is being attributed to renewed interest and confidence in the crypto market, with steady minting of stablecoins driving Bitcoin’s recent surge to $65,000.
The total stablecoin market capitalization has reached an all-time high in 2024, surpassing $169 billion. This growth is driven by an influx of new capital into the crypto market, indicating renewed interest and confidence. Leading stablecoins like Tether’s USDT and Circle’s USDC have seen significant increases this year, along with the emergence of new major player PayPal’s PYUSD.
Top Stablecoins See Growth in 2024
Tether’s USDT remains the top stablecoin, with its market cap increasing by around 28% so far in 2024 to $118 billion. USDT now makes up about 70% of the total stablecoin market.
Circle’s USDC has also grown in 2024, rising from $24 billion in early January to $34.67 billion in late August. Despite some fluctuations, USDC has firmly established itself as the second largest stablecoin.
The Newcomer: PayPal’s PYUSD
The PayPal-backed PYUSD stablecoin has witnessed impressive growth, surpassing USDD to become the fifth largest stablecoin. Over the weekend, PYUSD’s market cap exceeded $1 billion for the first time.
Declining Trading Volumes Despite Growth
Despite the rise in market cap, stablecoin trading volumes have dropped significantly in 2022. July trading volumes were down 83.5% to $795 billion due to less activity on centralized exchanges and regulatory issues in Europe. Volumes continued falling in August to around $52 billion.
Stablecoin Demand Driving Bitcoin Higher
Bitcoin’s recent surge to $65,000 has been heavily influenced by stablecoin demand. According to Matrixport, steady stablecoin minting has been the primary driver of Bitcoin’s upward momentum in recent weeks, despite inflows into spot BTC ETFs. Stablecoins remain a crucial fiat gateway into crypto, fueling further growth.
Conclusion
The total stablecoin market cap has hit an all-time high in 2024, indicating renewed confidence and interest in the crypto market. While trading volumes have declined, demand from stablecoins continues to drive Bitcoin and crypto prices higher by serving as a key fiat on-ramp. Major stablecoins like Tether’s USDT and Circle’s USDC have seen significant growth this year, while PayPal’s PYUSD has emerged as a new major player. The stablecoin market is likely to continue expanding as more capital enters the crypto space.
