[Stablecoin market surges to $170 billion, reaching highest point in two years]
Tether’s USDT pushed the stablecoin market to over $170 billion, hitting its highest point since the debacle of Terra’s UST. USDT now accounts for more than 70% of the stablecoin market and will continue to dominate through 2024, according to IntoTheBlock. USDT’s volatility reached an all-time low in July despite a broad market pullback.
USDT’s on-chain data shows significant growth, with over 18 million transactions per week on the Ethereum Virtual Machine (EVM)-compatible chain alone. The Tron network processed 78% of these transactions, making it the preferred platform for USDT transfers.
USDT surpassed Circle’s USD Coin (USDC) in monthly trading volume for the first time in 2024, according to Artemis data. In July, Tether’s stablecoin trading volume reached $721.5 billion, 17.7% higher than USDC.
With a market capitalization of over $620 million in its first year, PayPal’s PYUSD has contributed to the overall growth of the stablecoin market, demonstrating increased liquidity in the crypto economy.
Tether has expanded its use of the U.S. dollar, with a total of 48 million addresses holding USDT, 84% of which are on the Tron network, further solidifying its position as the dominant platform for USDT trading.
Additionally, Tether reported record profits of $5.2 billion in the first half of 2024, with USDT’s market capitalization approaching $120 billion.
Despite past controversies, USDT has shown resilience and continues to lead in real-world cryptocurrency applications.
