- Stablecoin market value surpasses $140 billion, highest since December 2022.
- Tether’s USDT hits record $98 billion market cap, up $2 billion monthly.
- USDC’s valuation jumps to $28.5 billion, outpacing Tether’s monthly growth rate.
In the current year, an influx of fresh capital is entering the cryptocurrency market, fueling optimism and accelerating the expansion of the stablecoin industry. CoinMarketCap data indicates that the total market value of stablecoins exceeded $140 billion as of February. DefiLlama reports that this figure represents the highest level recorded since December of the previous year, 2022.
Stablecoins are a type of digital currency that operates in a way that is comparable to traditional cash. They serve as a bridge between markets that are based on blockchain technology and the traditional currency system, enhancing the fluidity of trading and borrowing activities for those involved in the market. The growth in their overall market value represents a considerable advancement for the entire cryptocurrency sector due to the essential function they fulfill within the markets for digital assets.
In a market report, Vetle Lunde, who holds the position of senior analyst at K33 Research, expressed the following:
“Changes in stablecoin supply are a thermometer for whether money flows in or out of the crypto ecosystem.”
USDC’s Radiance
Following an 18-month downturn, the stablecoin market started to show considerable growth at the beginning of November. Lunde noted that since that time, the market capitalization has expanded by 12%, which equates to an increase of more than $15 billion, with approximately $10 billion of that growth happening since the beginning of the year.
Data from CoinGecko indicates that Tether’s USDT, the largest stablecoin, has achieved a new record high with a market capitalization of $98 billion, marking a rise of nearly $2 billion over the past month. The growth in stablecoin usage this year has been more varied compared to last year, which saw USDT as the dominant stablecoin.
CoinGecko reports that USDC, the stablecoin with the second-highest market capitalization, issued by Circle and backed by the cryptocurrency exchange Coinbase, experienced a notable surge in value. It escalated from a valuation of $24 billion at the year’s start to more than $28.5 billion. During this period, its monthly expansion, at approximately $2.5 billion, surpassed the growth rate of Tether for the corresponding duration.
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