Stablecoin Market Capitalization Records New High
26 Aug, 2024 ● Coin news
The stablecoin market capitalization has reached a new record high of $168 billion after experiencing 11 consecutive months of growth.
According to DefiLlama data, the total market cap of stablecoins is now at its highest level ever, surpassing its previous peak from March 2022.
This data excludes algorithmic stablecoins, which maintain their value through algorithmic mechanisms rather than being pegged to external assets like fiat currency or gold.
The market had previously hit an all-time high of $167 billion in March 2022, but it declined shortly after, dropping to $135 billion by the end of that year.
Crypto analyst Patrick Scott, also known as “Dynamo DeFi,” commented on Aug. 26 via X, suggesting that this milestone indicates “New money is entering crypto.”
“And just like that, we’re at a new all-time high. Total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022,” he stated.
While Scott didn’t speculate on the exact reasons behind the increase, he did note, “Retail has been in some form for at least eight months,” in response to a question about whether institutional investment was driving the rally.
Tether has been leading the stablecoin market, with the USDT market cap starting the year at $91.69 billion.
Throughout 2024, USDT has consistently posted monthly gains, surpassing $117 billion in market capitalization for the first time in August.
Circle’s USD Coin has also experienced growth this year, reaching a market cap of over $34 billion, its highest point in 2024, though still well below its all-time high of $55.8 billion in June 2022.
A report by CCData highlighted that stablecoin trading volumes dropped by 8.35% to $795 billion in July, attributed to lower trading activity on centralized exchanges.
The report cites concerns about the future of USDT in Europe, stemming from the Markets in Crypto-Assets Regulation, as factors contributing to the decline in stablecoin trading activity on centralized exchanges during July.
This downward trend has continued into August, with the market’s trading volume currently just above $46 billion, according to CoinMarketCap.
Sources:
https://cointelegraph.com/news/stablecoin-market-cap-hits-new-all-time-high
https://defillama.com/stablecoins?backing=FIATSTABLES&backing=CRYPTOSTABLES
