The stablecoin market has reached a two-year high, with Tether （USDT） leading the growth, driving market capitalization to over $160 billion.
Points
- The stablecoin market cap has surpassed $160 billion, its highest since the Terra UST collapse.
- Tether （USDT） dominates with over 70% market share.
- USDT recorded all-time low volatility in July despite broader market retractions.
- PayPal’s PYUSD has significantly contributed to the stablecoin market growth.
- Tether reported a record $5.2 billion profit in the first half of 2024.
The stablecoin market has surged past $160 billion in market capitalization, reaching its highest point since the collapse of Terra’s UST. This impressive growth is primarily driven by Tether （USDT）, which now comprises over 70% of the stablecoin market. Despite broader market retractions, USDT recorded all-time low volatility in July, highlighting its stability in the crypto economy
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According to data from IntoTheBlock, USDT’s on-chain metrics show significant growth, with over 18 million weekly transactions on Ethereum Virtual Machine-compatible chains alone. The Tron network handles 78% of these transactions, making it the preferred platform for USDT transfers. 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% higher than USDC.
PayPal’s PYUSD has also contributed to the overall growth of the stablecoin market. Within its first year, PYUSD surpassed $620 million in market cap, indicating increased liquidity flowing into the crypto economy. This expansion is a testament to the growing adoption of stablecoins for various financial applications, from payments to DeFi activities.
Tether has expanded access to US dollars, with 48 million addresses holding USDT. Of these, 84% are on the Tron network, further cementing its dominance in the stablecoin market. Additionally, Tether reported a record $5.2 billion profit in the first half of 2024, as USDT’s market cap approaches $120 billion.
Despite past controversies, USDT has demonstrated resilience and continues to lead in real-world crypto adoption. Its stability and widespread use make it a cornerstone of the stablecoin market, driving growth and innovation across the sector.
解説
- Market Leadership: Tether’s dominance in the stablecoin market is a significant factor in its growth. USDT’s widespread adoption and low volatility make it a preferred choice for traders and investors seeking stability in the crypto market.
- Transaction Volume: The high transaction volume on the Tron network highlights USDT’s role in facilitating seamless transfers and payments. This efficiency contributes to its popularity and market share.
- Institutional Adoption: PayPal’s entry into the stablecoin market with PYUSD underscores the growing acceptance of digital currencies by traditional financial institutions. This trend is likely to drive further adoption and integration of stablecoins in the global financial system.
- Profitability: Tether’s substantial profits reflect its robust business model and the increasing demand for stablecoins. The company’s financial health positions it well for future growth and market leadership.
- Regulatory Outlook: As stablecoins gain prominence, regulatory scrutiny is expected to increase. Tether and other stablecoin issuers will need to navigate evolving regulatory landscapes to maintain trust and compliance in the market.