Original title: Stablecoins now worth over $200bn
In a milestone for the crypto sector, the total supply of stablecoins has risen to $200bn for the first time. With the use of stablecoins increasingly prevalent for personal payments and institutional settlements, the sector is also starting to use these digital currencies more in the field of decentralized finance (DeFi).
The rapid surge in stablecoin popularity may have wide-ranging effects on the payments industry and broader economic system. On the micro level, it’s expected to reduce the cost of payment to below one cent. On a macro level, the availability of US dollar-pegged stablecoins might pose a challenge to nations with unstable currencies.
Even though this trend is ongoing, if the use of stablecoins has transitioned from niche in the crypto field to major industry over the past five years, there’s a strong probability they’ll become integrated into daily life more in the coming five years. Here’s a quick overview of recent on-chain dynamics among digital assets:
Stablecoin supply rises past $200bn, setting speed record.
The total market value for stablecoins climbed to a record high, jumping from $170bn to $200bn in 40 days after the US presidential election. Stablecoin use continues to rise, and currently amounts to 133m users. The rise in stablecoins usage is reflected by Tether (USDT) that saw its market cap balloon by $20bn to hit $140bn, which puts it top of the stablecoin rankings.
Circles’ USDC gained $6bn to hold a total volume of $41bn. Meanwhile, Etherea’s USDe doubled its value to reach $5.5bn from $2.5bn. USD0, a stablecoin backed by tokenized US Treasury assets USYC, grows by 130% in past month, which is being driven by 30% staking rewards and makes it the seventh-largest stablecoin, with a market cap close to $800m.
Among other updates:
Tether pre-mints 4bn USDT on Ethereum. Recent pre-mints of 1bn to 2bn transactions for Tether have driven Ethereum vault balance to 1.5bn. New tokens are expected to circulate within the coming days, accelerating Tether’s supply growth. USD0, Sky Dollar and First Digital USD are increasingly popular and gaining ground as stablecoin usage expands on Ethereum and BNB chains.
F(x) Protocol remains popular too, with TVL up to $65m while maintaining a stable anchor price for fxUSD. USDC, USDT and USDC continue to gain usage for DeFi income. The demand for sUSDe in lending is very strong. The biggest TVL sUSDe pool is the sUSDe-USDT on Uniswap, with a 24-hour net buy demand of $840m.
In conclusion, stablecoins are not just trending, but they’re also moving into new territories at an incredibly fast pace, which shows the power and flexibility of this technology in the field of digital currency. They are also beginning to enter the mainstream with more usage and acceptance as a global form of money.
So, while some countries have started to put regulations and restrictions on these currencies, there is an undeniable global appeal for stablecoins due to their potential for cross-border transfers, reduced transaction fees, and their ability to act as a hedge against the instability of traditional fiat currencies.
Source
Source
