Global Stablecoin Supply Hits New All-Time High
USDT alone accounts for 69% of the global stablecoin supply, having reached a market cap of over $133 billion.
The global stablecoin supply has hit 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 has increased by 46% this year, reaching a record of about $191.6 billion at the time of writing.
Stablecoin Market Value Up 50% Since January
According to recent statistics from DefiLlama, the overall value of stablecoins has gradually accelerated upwards over the last 12 months, showcased by a more than 50% increase 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, accounting for about 69% of the global market for such assets.
The other big player in the market, USDC, saw its market value rise to $39.5 billion after ending the financial year 2023 with $24 billion in circulation. The Circle-issued stablecoin holds 21% of the global market share.
In 2022, after the fall of TerraUSD, which fueled a market crash, the total value of stablecoins reportedly plummeted by $19 billion. Almost two and a half years later, the sector soared to new heights, reaching nearly $170 billion in August.
President-elect Donald Trump’s bullish crypto stance has also helped rally the digital assets market, pushing several cryptocurrencies to new all-time highs, including a Bitcoin surge past $99,000. Additionally, data from Coingecko shows that the overall value of the crypto market has increased by $0.88 trillion since Trump won.
Expectations on Crypto Adoption Grow
Elsewhere, there’s growing optimism that stablecoins will soon be more relevant to global trade, specifically cross-border transactions.
At the forefront of this is Tether, which recently announced it had completed its first-ever crude oil transaction from the Middle East. In October, the company’s investment division reportedly sponsored a physical crude oil transaction between a publicly traded supermajor oil firm and a top commodity dealer.
The intent to use stablecoins has also been ignited in the United Kingdom, whose policymakers plan to build a crypto regulatory framework come 2025, as Economic Secretary Tulip Siddiq revealed.
Investors in the UK were hopeful of a regulatory environment change, as the previous Conservative government placed crypto use under the country’s payment laws. According to Tulip, the new Labour government will implement a plan laid out by its predecessor to regulate stablecoins.
Policymakers are also seeking to ease the stringent rules the Financial Conduct Authority (FCA) imposes on the registration of crypto companies.
The post Global Stablecoin Supply Hits New All-Time High appeared first on CryptoPotato.
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