Tether (USDT) Sees Significant Supply Increase with $1 Billion Inflow into Stablecoin Market

The total market value of stablecoins has increased from $172.19 billion to $173.23 billion in six days. This growth has been supported by significant increases in the supply of leading stablecoins such as Tether (USDT), Circle’s USDC, and DAI.

Tether alone has increased its supply by 1.5%, adding $380 million since mid-September. Circle’s USDC, on the other hand, has grown by 2.9% in the past six days, with a $130 million increase in supply. At the same time, DAI’s supply has increased by 3.2%, reaching $190 million since mid-September.

First Digital’s $FDUSD has seen remarkable growth, reaching $2.94 billion in market value by the end of September, up 11%. This increase in capitalization reflects increasing investor confidence and adoption. In addition, smaller stablecoins such as GHO and DEUSD have also shown significant percentage gains. While GHO has gained 26% in the past month, DEUSD has grown 16.6%, demonstrating a diversified development in the stablecoin spectrum.

Contrary to broad market trends, Ethena’s USDE has seen a significant 14.7% drop in market value since the end of August, with $80 million withdrawn from its supply in the last six days. This sharp decline stands out as a notable departure from the predominantly bullish stablecoin landscape. Understanding the factors behind such a decline can provide deeper insight into market dynamics and investor behavior.

The recent inflow of capital into the stablecoin economy indicates increasing interest and trust in stable digital assets. While leading stablecoins such as Tether and $USDC dominate the market with their steady growth, newer and smaller coins such as FDUSD and GHO are also making significant progress. However, the decline of Ethena’s USDE is a reminder that volatility and risks still exist in the emerging stablecoin market.

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