Home Crypto News Stablecoin Market Capitalization Reaches Two-year High

Stablecoin Market Capitalization Reaches Two-year High

30 May, 2024 Crypto News

Stablecoin Market Capitalization Reaches Two-year High

A recent report by CCData highlighted a significant growth in the stablecoin market, reaching its highest market capitalization since April 2022 after eight months of consecutive growth.

As of the end of May, the total market cap of stablecoins had risen by 0.63% since the beginning of the month, totaling $161 billion.

Despite this increase, the overall market dominance of stablecoins dipped slightly to 6.07%, down from 7% in March, a shift attributed to a resurgence in major cryptocurrency values following the U.S. approval of a spot Ethereum ETF.

Athena USDe, one of the top ten stablecoins, saw its market cap increase by 11.6% to $2.61 billion, its fifth consecutive month of growth, largely due to its adoption as collateral for perpetual trading on Bybit.

Meanwhile, Tether maintained its position as the largest stablecoin by market cap, reaching a new high of $111 billion, accounting for 69.3% of the stablecoin market cap.

BlackRock’s tokenized fund token BUIDL also experienced substantial growth, increasing by 19.6% to $448 million and becoming the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI.

BUIDL is linked to BlackRock’s USD Institutional Digital Liquidity Fund and is interchangeable with USDC on a one-to-one basis.

Circle’s USDC also saw an increase for the sixth consecutive month, reaching a market cap of $32.6 billion in May.

The rise in demand for USDC was evident with its trading pairs hitting an all-time high in monthly volume in March, and its market share by trading volume climbed for the second consecutive month to 8.27%.

The report also noted increased on-chain trading activity for USDC on networks like Base and Solana, with a significant portion of USDC's supply now circulating on these chains.

Despite these gains, stablecoin trading volumes on centralized exchanges dipped to a monthly low of $829 billion on May 23, a trend observed typically in the two months following a Bitcoin halving event.

Overall, the stablecoin market has shown resilience and recovery from the previous year’s challenges, including the collapse of the Terra Luna ecosystem and the destabilization of TerraClassicUSD (USTC), which had sparked a prolonged market downturn.

Sources:

https://cointelegraph.com/news/stablecoin-market-cap-rises-to-2-year-highs-as-dominance-slides-to-6-ccdata

https://x.com/Bybit_Official/status/1788328023525146773

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://uploads-ssl.webflow.com/63e3774c88285e5c6cbf3b9d/66572af8f3f0dc56329149d3_Stablecoins%20%26%20CBDCs%20Report%20May%202024.pdf?utm_medium=email&_hsenc=p2ANqtz-_zHfkd4OOzpiSw968fQu7LwSun25nsUuGzqStqpHStCKpkTICPDpmSlIdqj-bhEPntYe_527OOE3gMt4S3yeH8V-V__QSA-83TaHQw7Vs_THD954Q&_hsmi=88566049&utm_content=88566049&utm_source=hs_automation

Back to Crypto News
Related articles
Crypto Investments Reached $1 Billion in May

Crypto News

Crypto Investments Reached $1 Billion in May

Donald Trump Wants Bitcoin 'Made in USA'

Crypto News

Donald Trump Wants Bitcoin 'Made in USA'

USA Warns Users About Romance Crypto Scams

Crypto News

USA Warns Users About Romance Crypto Scams

Crypto Inflows Reached $2 Billion in June

Crypto News

Crypto Inflows Reached $2 Billion in June

Don’t miss any crypto news

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

By sharing your email, you consent to receiving BITmarket’s newsletter. Read how we process your data in our Privacy policy

You’ve made us very happy 😊

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

Something went wrong 😔

If your problem persists please try contact our support