Stablecoins have reached an all-time high market cap of $169.57 billion following nearly a year of uninterrupted growth.<\/p>\n
Leading assets such as Tether\u2019s USDT and Circle\u2019s USDC have seen a significant resurgence this year, in addition to a newcomer.<\/p>\n
Data compiled by DefiLlama revealed<\/a> that this is the highest market cap for stablecoins, surpassing the previous peak of $167 billion established in March 2022, which later declined to $135 billion by year\u2019s end.<\/p>\n Weighing on the latest milestone, crypto analyst Patrick Scott said<\/a> that this new peak indicates a fresh influx of capital into the crypto market, suggesting renewed interest and confidence in the space.<\/p>\n \u201cAnd just like that, we\u2019re at a new all-time high. The total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022. New money is entering crypto.\u201d<\/p>\n The growing stablecoin market cap might be a sign that institutional investors are funneling more funds into crypto, but Scott emphasized that retail participation has been ongoing for at least eight months.<\/p>\n Topping the chart is the leading stablecoin \u2013 USDT \u2013 which has experienced a market cap increase of approximately 28% so far this year, rising from around $92 billion at the start of the year to $118 billion at the time of writing. USDT now makes up around 70% of the entire stablecoin market cap.<\/p>\n Meanwhile, Circle\u2019s USDC has also shown growth in 2024, despite some fluctuations, rising from almost $24 billion in early January to $34.67 billion as of August 26th.<\/p>\n Additionally, the PayPal-backed PYUSD stablecoin has also witnessed an impressive increase. It has surpassed USDD to position itself as the fifth largest stablecoin, with a market cap exceeding $1 billion over the weekend.<\/p>\n The rise in the market cap hasn\u2019t stopped stablecoin trading volumes from dropping. CCData reported<\/a> an 8.35% reduction in July\u2019s trading volumes, down to $795 billion, driven by less activity on centralized exchanges and regulatory issues in Europe owing to the Markets in Crypto-Assets Regulation (MiCA). This downward trend continued into August, with current volumes of just around $52 billion.<\/p>\n Bitcoin\u2019s recent rise to $65,000 has been significantly influenced by stablecoin minting, according to Matrixport\u2019s latest findings<\/a>. Despite the inflows into spot Bitcoin ETFs, the steady minting of stablecoins has emerged as the primary driver behind this upward momentum over the last two weeks.<\/p>\n Serving as a crucial fiat on-ramp into the crypto market, stablecoin activity appears to be the key factor backing BTC\u2019s surge.<\/p>\n The post Stablecoins Hit Record Market Cap of Nearly $170 Billion After Year of Growth<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Stablecoins have reached an all-time high market cap of $169.57 billion following nearly a year of uninterrupted growth. Leading assets such as Tether\u2019s USDT and Circle\u2019s USDC have seen a significant resurgence this year, in addition to a newcomer. Stablecoin Market Cap Surge Data compiled by DefiLlama revealed that this is the highest market cap […]<\/p>\n","protected":false},"author":0,"featured_media":1097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/1096"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1096"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/1096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/1097"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Stablecoin Minting Pushes Bitcoin<\/h2>\n