The global supply of stablecoins has reached new highs, with Tether (USDT) and USD Coin (USDC) dominating the sector.
According to a Bloomberg report citing data from DefiLlama, the market capitalization of stablecoins is up 46% this year, reaching a record of around $191.6 billion at the time of writing.
The market value of Stablecoin has increased by 50% since January
According to recent statistics from DefiLlama, the global value of stablecoins has been steadily accelerating upward over the past 12 months, shown by an increase of more than 50% from the beginning of 2024 to date.
Tether, the world’s largest stablecoin issuer, has seen the circulation of its USDT token reach approximately $133 billion, representing approximately 69% of the global market for these assets.
The other big player in the market, USDC, saw its market value rise to $39.5 billion after ending the 2023 financial year with $24 billion in circulation. The stablecoin issued by Circle has 21% of the global market share.
In 2022, after the collapse of TerraUSD, which led to a market crash, the total value of stablecoins decreased by $19 billion. Nearly two and a half years later, the industry has soared to new heights, reaching nearly $170 billion in August.
President-elect Donald Trump’s bullish stance on cryptocurrencies has also helped boost the digital asset market, pushing several cryptocurrencies to new all-time highs, including a Bitcoin surge above $99,000. Additionally, Coingecko data shows that the global crypto market value has increased by $0.88 trillion since Trump won.
Expectations about crypto adoption are growing
Elsewhere, there is growing optimism that stablecoins will soon become more relevant to global trade, specifically cross-border transactions.
At the forefront of this is Tether, which recently announced that it had completed its first crude oil transaction from the Middle East. In October, the company’s investment arm sponsored a physical crude oil transaction between a major publicly traded oil company and a major commodities distributor.
The intention to use stablecoins has also ignited in the UK, whose policy makers plan to build a crypto regulatory framework by 2025, as revealed by Economic Secretary Tulip Siddiq.
Investors in the UK were expecting a change in the regulatory environment, as the previous Conservative government placed the use of cryptocurrencies under the country’s payment laws. According to Tulip, the new Labor government will implement a plan set out by its predecessor to regulate stablecoins.
Policy makers are also looking to ease the strict rules that the Financial Conduct Authority (FCA) imposes on the registration of crypto companies.
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