The stablecoin market has grown exponentially, becoming a crucial component of the cryptocurrency ecosystem. From a modest $1 billion supply in 2018, the stablecoin market has expanded to over $160 billion by 2024.
This massive growth underscores the critical role stablecoins play in providing liquidity, stability, and utility for numerous blockchain projects.
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USDT and USDC: Dominating the Market
Tether (USDT) and USD Coin (USDC) remain the top two stablecoins. As of September 2024, USDT has a commanding market capitalization of $118.46 billion, far surpassing USDC’s $35.27 billion. USDT also leads in transaction volume and active users, particularly on the Ethereum network, where it boasts over 107,000 active addresses compared to USDC’s 37,780. This demonstrates a clear preference for USDT, driven by its perceived stability and widespread use.
Stablecoin Market Sees Major Shifts in September 2024
The stablecoin market has grown significantly, becoming a key part of the #cryptocurrency world.
Back in 2018, the total supply of stablecoins was just $1 billion, but by 2024, it has skyrocketed to over $160 billion.… pic.twitter.com/xgbEGfBtSl
— CryptoTvplus (@Cryptotvplus) September 23, 2024
Impact of Silicon Valley Bank’s Collapse
The collapse of Silicon Valley Bank in March 2023 had a significant impact on the stablecoin market, particularly USDC. As USDC’s market share shrank, USDT’s supply surged, reflecting a shift in user confidence toward USDT during times of financial uncertainty. This event reinforced USDT’s position as the go-to stablecoin in times of crisis.
DAI’s Dominance in On-Chain Trading
DAI has emerged as a leader in on-chain trading volume, with an impressive $370.43 billion in September 2024—well above USDC’s $156.27 billion and USDT’s $111.13 billion. DAI’s success highlights its growing role within decentralized finance (DeFi) platforms, where it has become a key asset.
Whale Activity in Stablecoins
Large transactions, typically over $100,000, dominate the volume for stablecoins like DAI, FDUSD, and USDE, indicating that institutional investors or “whales” are driving much of the activity. Meanwhile, stablecoins like TUSD and BUSD have a more balanced user base with fewer large-scale transactions.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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