•The market value of stable currencies rose to its highest levels in 11 months with an increase in activity on the blockchain at the beginning of the year, as a recent market study conducted by the crypto analytics company CCData indicated an increase in the market value of stable currencies coinciding with an increase in market share, trading volumes, and institutional investments in the digital assets market. .
•This month, the market value of stablecoins rose by 2.45%, reaching $134 billion, which is its highest level since last February - that is, in eleven months - in addition to this being the fourth month in a row of its rise. Stablecoin trading volume reached $995 billion in December, a monthly increase of 27.6%, marking the highest activity on centralized exchanges (CEXs) in the past year.
•Optimism toward exchange-traded funds (ETFs) increases market activity
•The report indicates that trading volumes in January will exceed those of December, as blockchain trading volume has already reached $579 billion on January 10 - with 20 days remaining until the end of the month - and before the approval of... SEC on Spot Bitcoin ETFs.
•The months leading up to the approval of Bitcoin ETFs were filled with expectations that sparked market reactions, as institutional investors increased their investment in digital assets. Stablecoins have always been known for their balanced nature and not experiencing fluctuations like Bitcoin and other altcoins, which made them preferred by institutional investors.
•On the other hand, stablecoins have long been considered an effective tool for entry and exit into the crypto market, recording increases whenever institutional investment incentives are renewed. Previously, the movements of Bitcoin and altcoins led to a decline in the dominance of the stablecoin market, representing a decline for the fifth month in a row.
•The dominance of stablecoins in the market has decreased from 7.78% in December to 7.78%, while Tether (USDT) continues to lead stablecoins in terms of trading volume and market capitalization, as it holds 70.8% of the market share of the top 10 stablecoins.
•Meanwhile, FDUSD overtook USDC in terms of trading volume with a market share of 8.96% in January compared to USDC's 8.43% share of stablecoin trading volume.
•PYUSD, which gained tremendous momentum upon its launch, recorded a growth of 11.2% with a market capitalization of $260 million in January, entering the list of the top ten stablecoins for the first time.
•Central banks expand research into central bank digital currencies (CBDCs)
•The aforementioned report highlighted the most important developments related to central bank digital currencies (CBDCs), such as the Bank of Spain choosing partners to test its CDBC currency; Experiments in Turkey have also entered the second phase, while China is dealing with its first money laundering case using CBDC.
•In January, developments in central bank digital currencies (CBDCs) were relatively calm, the most important of which was the Eastern Caribbean Central Bank and the European Central Bank inviting merchants to use their respective CBDCs, i.e. DCash and the digital euro, respectively.
•Furthermore, the European Central Bank will further develop offline digital euro transactions, and the Reserve Bank of India plans to find faster and cheaper ways to pay internationally using CBDC.
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