USDC and Tether Boost Stablecoin Market to New Heights
As 2024 progresses, stablecoins are seeing remarkable growth. Their market dominance has climbed to 6.93%, continuing a ten-month trend of increasing value.
Stablecoins, designed to offer price stability by pegging their value to assets like fiat currencies, are gaining traction compared to the more volatile cryptocurrencies like Bitcoin and Ethereum. CCData reports that the total market cap for stablecoins hit $164 billion in July, up 2.11%.
Tether (USDT), the largest stablecoin, reached a record $116 billion, marking its eleventh consecutive month of growth. It now holds a 69.6% market share. Other stablecoins, such as USD Coin (USDC) and PayPal USD (PYUSD), also saw gains, while First Digital USD (FDUSD) and Ethena USDe experienced declines. USDC’s market cap surged significantly, driven by compliance with new European regulations (MiCA).
READ MORE: Bitwise CIO Predicts Major Institutional Investment in Crypto ETFs This Year
Despite this, trading volumes for stablecoins fell by 8.35% to $795 billion in July due to decreased activity on centralized exchanges. However, new developments like spot Ethereum ETFs and favorable market conditions may lead to a rebound in trading volumes.
USDC has particularly thrived, capturing 73.5% of the market share among the top stablecoins. Its trading volume on centralized exchanges increased by 48.1% to $135 billion, benefiting from its MiCA compliance. The success of USDC on the Solana blockchain, where it dominates stablecoin transactions, further underscores its growing influence in the cryptocurrency space.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
