The supply of stablecoins within the crypto market has soared to a new record. With the continuous increase in supply, the global stablecoin market capitalization is now approaching $200 billion.
According to data from DefiLlama, the market capitalization of stablecoins has expanded by 46% this year, reaching $192.56 billion at the time of writing. The data indicates that the stablecoin market is predominantly dominated by Tether (USDT), with a share of 69.70%.
Tether (USDT) is currently the largest stablecoin in the field, with a market cap of $134.21 billion. It is followed by Circle’s USDC, with a market cap of $39.7 billion. The remaining $18 billion consists of several algorithmic and fiat-backed stablecoins such as DAI, Ethena USD (USDe), First Digital USD (FDUSD), and others.
As the cryptocurrency market is currently in a bullish phase, a large amount of stablecoin supply has been minted to meet the increased market demand. The 46% increase this year reflects this situation, with Tether alone minting over $50 billion of USDT in the past year.
The rise in stablecoin supply is also attributed to Donald Trump’s strong stance on crypto, with his becoming the next U.S. president being one of the key reasons behind Bitcoin’s remarkable surge to $99,000.
Moreover, the enthusiasm for using stablecoins has also been growing in the United Kingdom as the policymakers in the country have decided to introduce a framework for the crypto market in 2025.
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