The stablecoin economy has grown substantially, surpassing its previous peak recorded just before Terra’s stablecoin collapsed in May 2022.
Stablecoin Market Sees Triple-Digit Growth as Tether’s Market Cap Hits $132B
Data reveals that the crypto economy is currently valued at $3.33 trillion, with stablecoins making up anywhere between 5.70% and 6.02% of the total, depending on the market cap tracker used. For example, on Nov. 27, coingecko.com estimated the stablecoin sector’s worth at $200.64 billion. This figure, however, also factors in assets with stablecoin-like qualities, such as Paxos’ gold-backed token PAXG and Tether’s gold coin XAUT, among other ‘stable’ styled assets.
Nearly four years ago, on Feb. 18, 2021, Coingecko data revealed the stablecoin market was valued at just $47.84 billion. Fast forward to today, and their statistics show a 319.28% increase since the beginning of 2021, with the stablecoin economy now sitting at $200.64 billion. Defillama.com paints a slightly different picture, excluding gold-backed tokens like Paxos’ PAXG and Tether’s XAUT, estimating the stablecoin market at $189.884 billion.
Defillama’s records, which date all the way back to April 2, 2021, reported a $66.32 billion valuation for the stablecoin market at that time. Based on those figures, the sector has grown by 186.30% since early April 2021. Despite differences in metrics between these platforms, both agree on the massive growth and record-breaking values stablecoins have achieved. Dominating this sector is the heavyweight tether (USDT), which Coingecko lists with a staggering market cap of $132.79 billion.
In 2021, USDT’s valuation stood at $33.13 billion on Feb. 18, marking a more than 300% climb to its current level. Circle’s USDC outpaced even this growth, skyrocketing by 432.98% over the same period, jumping from $7.34 billion to $39.08 billion. The stablecoin leaderboard has also seen a shakeup over the last three years and nine months. Back then, the top five stablecoins by market cap were USDT, USDC, DAI, BUSD, and USDP. Today, the top five are USDT, USDC, USDS, USDE, and DAI.
Both USDS and USDE are yield-bearing stablecoins. The fiat-pegged token economy’s dramatic expansion highlights the central role stablecoins now play in the crypto market. As these digital assets diversify, they’re becoming critical in shaping global financial systems, and redefining liquidity and utility across various markets. Their continued growth and evolving dynamics are seemingly cementing their place as foundational pillars in the future of digital finance.
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