The stablecoin market is growing, increasing liquidity and stabilizing the crypto space. This growth can be seen in the two largest stablecoins, Tether USD (USDT) and USD Coin (USDC), which are now responsible for a large portion of the crypto market’s transaction volume.
A tweet by the decentralized finance analysis platform IntoTheBlock revealed that USDT and USDC now represent roughly 50% of the total transaction volume among major cryptocurrencies. IntoTheBlock’s analysts said this growth highlights the crucial role of stablecoins in the crypto ecosystem.
Stablecoins Are Growing
Since the beginning of the year, stablecoins have achieved several milestones. In August, their total market capitalization hit a new all-time high of nearly $170 billion, reflecting the growing adoption of these cryptocurrencies and the recognition of their advantages. According to data from CoinMarketCap, the market cap had exceeded $172 billion at the time of writing.
Crypto developers are increasingly integrating stablecoins into existing payment systems and facilitating more use cases for digital assets in traditional finance.
Stablecoins are now used for remittance payments and streamlining cross-border transactions. This growth has attracted more users to the ecosystem, increasing the supply of stablecoins and leading to the emergence of new players like Ripple. Also, this growth signals rising institutional interest and the channeling of more funds into crypto.
USDT and USDC Continue to Dominate
Amid the uninterrupted stablecoin development, assets like USDT and USDC have remained dominant. USDT currently accounts for nearly 70% of the stablecoin market cap, growing from $92 billion at the beginning of the year to $119 billion at the time of writing.
USDC, on the other hand, has also grown significantly from the start of the year, recording an over 41% increase from $24 billion in early January to $34.75 billion as of October 18.
Jeremy Allaire, the CEO of Circle, the issuer of USDC, stated four months ago that stablecoins could account for at least 10% of global economic money within the next decade or so because the assets have the potential to revolutionize finance, commerce, and governance. According to Allaire, the crypto industry is still in its early stages, and stablecoins could become the wheels that drive significant development and rapid adoption.
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