Stablecoin trading volume jumped 77.5% to $1.81 trillion in November, marking a yearly high and reflecting increased confidence in the cryptocurrency market.
The stablecoin market saw spectacular growth in November, with trading volume reaching a record $1.81 trillion as of November 25, according to the latest report from CCData released on November 27.
The figure represents an impressive 77.5% growth month-on-month, indicating a resurgence in the crypto market and growing investor confidence. Stablecoin trading volumes on centralized exchanges are expected to reach their highest level of the year for the month.
Total stablecoin market capitalization hits new high in November. Source: CCData Strong recovery after TerraUSD shock
The growth came as the total stablecoin market capitalization also increased by 9.94% in November, reaching $190 billion, surpassing the peak of $188 billion recorded in April 2022 - the time before the collapse of stablecoin TerraUSD (UST) caused an earthquake across the market.
Despite the strong increase in market capitalization, stablecoin dominance in the overall cryptocurrency market decreased from 7.22% in October to 5.54% in November. This shows a shift in capital flows to other digital assets such as Bitcoin and altcoins, as investors look for opportunities to diversify their portfolios.
Tether (USDT), the largest stablecoin in the market, continued to consolidate its leading position with a 10.5% increase in market capitalization to $133 billion, accounting for 69.9% of the total stablecoin market. USD Coin (USDC) from Circle, a direct competitor of Tether, also recorded a significant growth of 12.1% in market capitalization to $38.9 billion - the highest level since February 2023. The growth of the two leading stablecoins partly reflects the growing demand for stable assets amid the volatile crypto market.
Other stablecoins also saw notable growth. USDE by Ethena Labs, for example, saw its market capitalization soar 42.2% to $3.86 billion. According to CCData, this growth could be driven by increased interest in the Ethena ecosystem, especially after the company proposed revenue sharing for Ethena (ENA) token holders.
USDE, which launched in February 2023, currently offers an annual yield (APY) of 21.2%, down from a peak of 55.9% in March.
However, not all stablecoins have benefited from this boom. First Digital USD (FDUSD) and Sky Dollar (USDS), formerly Dai (DAI), have both seen significant drops in market capitalization.
Specifically, FDUSD's market capitalization fell 14.9% to $1.90 billion, while USDS fell 8.34% to $950 million in November. This decline could be due to a number of factors, including fierce competition from larger stablecoins and a shift in investor sentiment.
