The largest stablecoin issued by Tether (USDT) has hit a new all-time high. According to data from aggregator Coinmarketcap, USDT’s market capitalization has increased by 10% since the beginning of the year, reaching $99.57 billion.

The decline in the stablecoin market, which lasted for a year and a half, has stopped. Since November 2023, there has been a recovery in the stablecoin market. The total market capitalization of stablecoins has reached $142 billion, the highest since December 2022.

Analysts attribute the growth of the stablecoin market to the steady demand for USDT and USD Coin (USDC) from Circle, the second-largest stablecoin.

Tether’s stablecoin prevails on non-US exchanges, including the world’s leading exchange, Binance. The head of USDT’s issuing company, Paolo Ardoino, expects increased consolidation of cryptocurrencies with traditional finance. He attributes this to the growing interest of hedge funds and corporations in the «stable coin».

In early March, Tether issued an additional 1 billion tokens on the Ethereum network. As a result, the circulating supply of USDT has exceeded $99.5 billion. For comparison, the nearest competitor stablecoin USDC has a significantly lower figure of $28.9 billion.

USD Coin remains the second-largest stablecoin. USDC is gradually regaining the positions lost in 2023. Since the beginning of the year, the stablecoin’s market capitalization has continued to grow. Analysts attribute this trend to increased liquidity and an influx of new users into the cryptocurrency market. Demand for USDC is also fueled by the fact that many of the bitcoin ETFs launched in January use the US crypto exchange Coinbase for bitcoin settlements.

Bitcoin exchange-traded funds (ETFs) in the US and the bitcoin rally this year are fueled by inflows from US investors who prefer USDC for cryptocurrency settlements. The stablecoin’s growth was also helped by the relisting of several trading pairs on Binance with USDC at the end of 2023.

The USDC operator has abandoned the issuance of the token on the Tron network. Currently, the leading networks for USD Coin issuance are Ethereum and Solana. USDT, on the other hand, most actively uses Tron for token issuance and circulation.

According to data from the DefiLlama service, the market value of stablecoins on the Tron network is $52 billion. Almost all of it is accounted for by USDT ($50 billion). The volume of USDC tokens issued on the Tron network is $250 million.

Analysts note that changes in the market capitalization of stablecoins are a kind of «litmus test» that determines the movement of funds in the cryptocurrency ecosystem.

You might be interested in:
23.05.2024

Venture Investors Increase Funding for Blockchain Startups

Venture capital investors invested $2.4 billion in blockchain startups in the first quarter of 2024. Investment growth by 40.3% against the backdrop of the legalization of crypto ETFs and the expected easing of monetary policy by the US Federal Reserve.
20.05.2024

Hong Kong Joins CBDC Testing

Hong Kong is joining the testing of the digital yuan: residents of the city will be able to create wallets and use CBDC to pay for goods and services in both Hong Kong and mainland China.
17.05.2024

Non-EVM Blockchains Outperform EVM-Compatible Networks in Transaction Speed CopyRetry

According to CoinGecko, blockchains that do not support the Ethereum Virtual Machine (EVM) exhibit significantly higher transaction processing speeds compared to EVM-compatible networks. On average, non-EVM blockchains are able to conduct transactions approximately four times faster than their EVM counterparts.
15.05.2024

Bitcoin is a safe haven for investors during inflation

Bitcoin is a safe haven for investors during times of inflation. Limited supply, independence from central banks and growing institutional interest make BTC an attractive asset.
Related Topics
Crypto in Estonia
Crypto license in Hong Kong
Crypto Regulations in Hong Kong
Crypto Regulations in the US
Crypto-Friendly Banks
Cryptocurrency in Hong Kong
Cryptocurrency License
Cryptocurrency License in Estonia
cryptocurrency license in Malta
cryptocurrency license in the USA
Obtaining a cryptocurrency license
Popular
23.05.2024

Venture Investors Increase Funding for Blockchain Startups

Venture capital investors invested $2.4 billion in blockchain startups in the first quarter of 2024. Investment growth by 40.3% against the backdrop of the legalization of crypto ETFs and the expected easing of monetary policy by the US Federal Reserve.
20.05.2024

Hong Kong Joins CBDC Testing

Hong Kong is joining the testing of the digital yuan: residents of the city will be able to create wallets and use CBDC to pay for goods and services in both Hong Kong and mainland China.
17.05.2024

Non-EVM Blockchains Outperform EVM-Compatible Networks in Transaction Speed CopyRetry

According to CoinGecko, blockchains that do not support the Ethereum Virtual Machine (EVM) exhibit significantly higher transaction processing speeds compared to EVM-compatible networks. On average, non-EVM blockchains are able to conduct transactions approximately four times faster than their EVM counterparts.
15.05.2024

Bitcoin is a safe haven for investors during inflation

Bitcoin is a safe haven for investors during times of inflation. Limited supply, independence from central banks and growing institutional interest make BTC an attractive asset.
To help improve your experience of our website we would like to use cookies. This means we collect some information on your activity while you are on the website. For more information read more about our use of cookies here, your setting can be changed at any time. Please accept our use of cookies and help us improve your experience.