In May 2024, the stablecoin market cap reached a two-year high of $161 billion, a 0.63% increase from the start of the month, according to CCData. Tether (USDT) retains its dominance in the stablecoin industry with a record market cap of $111 billion, accounting for 69.3% of the total. Other notable performers include Athena USDe, whose market cap grew by 11.6% to $2.61 billion, and BlackRock’s tokenized fund, BUIDL, which surged 19.6% to $448 million.

Circle’s USDC also saw a significant increase, with its market cap reaching $32.6 billion in May, marking the sixth consecutive month of growth. This coincides with increased demand, as USDC pairs recorded an all-time high monthly trading volume in March. The report also noted that USDC has benefited from increased on-chain trading activity on networks like Base and Solana.

Despite regulatory uncertainties and potential delisting of USDT pairs from platforms like Kraken due to upcoming MiCA regulations, the stablecoin market has shown resilience. The report also touched on the slow adoption of Central Bank Digital Currencies (CBDCs), with Brazil postponing its DREX digital currency pilot program to 2025 and Nigeria's e-Naira CBDC seeing only marginal transaction increases since its October 2021 launch.