Stablecoin Market Cap Hits $161 Billion Amid Crypto Rebound

The stablecoin market capitalization has reached its highest level since April 2022, following eight consecutive months of growth, according to the latest issue of CCData’s “Stablecoins & CBDCs” Report.

CCData, a Financial Conduct Authority (FCA)-authorized benchmark administrator and a leading player in digital asset data, delivers institutional-grade insights into the digital asset market. Utilizing tick data from globally recognized exchanges and integrating various datasets, CCData offers a holistic view of the market, encompassing trade, derivatives, order books, historical, social, and blockchain data.

The stablecoin sector has recently experienced substantial growth and heightened scrutiny. As essential tools for trading digital assets, stablecoins enable the seamless transition of fiat-pegged funds into blockchain applications. Nonetheless, incidents like Tether’s collateralization issues and the collapse of TerraUSD have raised concerns among investors and regulators.

CCData’s Stablecoins Report highlights crucial developments in the stablecoin market. It examines market capitalization and trading volumes, categorized by collateral type and pegged asset. Published monthly, the report serves a wide audience, from crypto enthusiasts seeking an overview to investors, analysts, and regulators requiring in-depth analysis.

According to the May 2024 issue of CCData’s Stablecoins & CBDCs Report, the total market capitalization of stablecoins has risen to an impressive $161 billion, marking the eighth consecutive increase in the end-of-month market cap. This surge has propelled stablecoins to their highest level since April 2022, signifying a remarkable recovery from the losses incurred following the collapse of TerraUSD, which had triggered a seventeen-month downtrend.

Leading the charge in this resurgence is Circle’s USDC, which has witnessed its market capitalization rise for the sixth consecutive month, reaching $32.6 billion in May. This growth coincides with a surge in demand for the stablecoin, with USDC pairs recording an all-time high monthly trading volume in March. Consequently, USDC’s market share by trading volume has risen for the second consecutive month, now standing at an impressive 8.27%.

Meanwhile, Tether Holdings has announced a record quarterly profit of $4.52 billion in their reserves report for Q1 2024. This remarkable achievement aligns with USDT’s sustained uptrend in market capitalization, which has been on the rise for nine consecutive months, climbing from $82.8 billion in August 2023 to its current level of $111 billion.

However, not all stablecoins have enjoyed the same level of success. The latest data from the International Monetary Fund reveals that the adoption of Nigeria’s e-Naira has failed to gain significant traction. Since its launch in October 2021, only 854,512 transactions have been executed using the CBDC currency. The report indicates that a total of 29.3 billion NGN worth of transactions has been made using e-Naira, representing a modest increase of only $7.3 billion from the previous update in March 2023.