The stablecoin market has reached a two-year high in market capitalization, driven primarily by Tether （USDT）, which dominates the market with a 70% share.
Points
- The stablecoin market has reached a $164 billion market cap, the highest in two years.
- Tether （USDT） holds a dominant 70% share of the stablecoin market.
- Tether’s on-chain metrics show significant growth, with over 18 million weekly transactions.
- USDT surpassed Circle’s USD Coin （USDC） in monthly transfer volume for the first time in 2024.
- PayPal’s PYUSD has also contributed to the stablecoin market’s growth, reaching a $620 million market cap.
The stablecoin market has achieved a significant milestone, reaching a market capitalization of $164 billion, the highest in two years. This growth has been primarily driven by Tether （USDT）, which continues to dominate the market with a substantial 70% share.
Tether’s Market Dominance
Tether’s dominance in the stablecoin market is evident, with its USDT token playing a crucial role in driving the market’s growth. According to data from IntoTheBlock, Tether’s market value has surged to more than $114 billion, as demand for the stablecoin has increased throughout the year’s crypto boom.
On-Chain Metrics and Transaction Volumes
USDT’s on-chain metrics indicate significant growth, with over 18 million weekly transactions on Ethereum Virtual Machine （EVM）-compatible chains alone. The Tron network has become the preferred platform for USDT transfers, handling 78% of these transactions. Notably, USDT surpassed Circle’s USD Coin （USDC） in monthly transfer volume for the first time in 2024, reaching $721.5 billion in July, 17.7% more than USDC.
Contribution of PayPal’s PYUSD
PayPal’s PYUSD stablecoin has also contributed to the overall growth of the stablecoin market. Within its first year, PYUSD has reached a market cap of $620 million, indicating increased liquidity flowing into the crypto economy.
Tether’s Financial Performance
Tether Holdings reported a net operating profit of $1.3 billion in the second quarter of 2024, with income from its U.S. Treasury assets offsetting a drop in Bitcoin’s value. Tether’s direct and indirect treasuries holdings have grown to more than $97.60 billion, further cementing its position in the market.
Resilience Amid Controversies
Despite past controversies, Tether has demonstrated resilience and continues to lead in real-world crypto adoption. Its ability to maintain market dominance and drive the stablecoin market’s growth underscores its importance in the crypto ecosystem.
解説
- Market Growth: The stablecoin market reaching a $164 billion market cap is a significant milestone, reflecting the growing acceptance and use of stablecoins in the crypto economy. This growth is crucial for providing liquidity and stability in the volatile crypto market.
- Tether’s Role: Tether’s dominance with a 70% market share highlights its pivotal role in the stablecoin sector. Its widespread use for transactions and as a store of value underscores its utility and reliability among users.
- Transaction Volumes: The high transaction volumes on the Tron network and the surpassing of USDC in monthly transfer volume indicate Tether’s robust network activity. This activity is essential for maintaining liquidity and facilitating smooth transactions in the crypto market.
- Financial Health: Tether’s strong financial performance, with significant profits and substantial U.S. Treasury holdings, demonstrates its stability and ability to weather market fluctuations. This financial health instills confidence in investors and users.
- Future Prospects: The continued growth of stablecoins, including new entrants like PayPal’s PYUSD, suggests a positive outlook for the sector. As stablecoins become more integrated into the broader financial system, their importance and market share are likely to increase further.