The stablecoin market has hit a two-year peak, surpassing $160 billion in value, driven by the dominance of Tether’s USDT and increasing adoption of stablecoins.
Points
- Stablecoin market value exceeds $160 billion, the highest since Terra’s collapse.
- Tether’s USDT holds over 70% of the market, leading stablecoin growth.
- PayPal’s PYUSD contributes to market expansion with a $620 million market cap.
- Stablecoins see increased usage and transaction volumes across multiple networks.
The stablecoin market has reached a significant milestone, surpassing $160 billion in value, marking its highest point since the collapse of Terra’s UST. This surge is primarily driven by Tether’s USDT, which now comprises over 70% of the stablecoin market and has maintained dominance throughout 2024.
Tether’s on-chain metrics indicate robust growth, with over 18 million weekly transactions on Ethereum Virtual Machine-compatible chains alone. The Tron network handles 78% of these transactions, becoming the preferred platform for USDT transfers. Notably, USDT surpassed Circle’s USD Coin （USDC） in monthly transfer volume for the first time in 2024, with Tether’s stablecoin reaching $721.5 billion in volume in July, outpacing USDC by 17.7%.
PayPal’s PYUSD has also contributed to the stablecoin market’s growth, surpassing $620 million in market cap within its first year. This expansion signifies increased liquidity flowing into the crypto economy and highlights the growing adoption of stablecoins as a reliable digital asset.
Moreover, Tether reported a record $5.2 billion profit in the first half of 2024, with USDT approaching a $120 billion market cap. Despite past controversies, Tether has demonstrated resilience and continues to lead in real-world crypto adoption.
The increasing adoption of stablecoins is evident from the significant number of addresses holding USDT. With 48 million addresses, 84% of which are on the Tron network, Tether’s reach and usage have expanded substantially. This growth underscores the importance of stablecoins in providing liquidity and stability in the volatile crypto market.
解説
- The stablecoin market’s growth past $160 billion highlights the increasing reliance on stable digital assets for transactions and liquidity in the crypto economy.
- Tether’s USDT dominance and high transaction volumes across multiple networks, particularly Tron, showcase its pivotal role in the stablecoin ecosystem.
- PayPal’s entry into the stablecoin market with PYUSD indicates mainstream financial institutions’ growing interest in digital assets, contributing to market expansion.
- The resilience of stablecoins, despite past controversies, reflects their importance in maintaining market stability and providing a hedge against volatility.
- Understanding the dynamics of the stablecoin market and its key players can help investors navigate the evolving digital asset landscape and identify opportunities for growth and stability.