The stablecoin market is growing, increasing liquidity and stabilizing the cryptocurrency space. This growth can be seen in the two largest stablecoins, Tether USD (USDT) and USD Coin (USDC), which currently account for the majority of trading volume in the cryptocurrency market.
According to a tweet from IntoTheBlock, a decentralized financial analysis platform, it has been revealed that USDT and USDC currently account for approximately 50% of the total trading volume of major cryptocurrencies. Analysts at IntoTheBlock said this growth highlights the important role of stablecoins in the cryptocurrency ecosystem.
Stablecoins are growing
Since the beginning of this year, stablecoins have achieved several milestones. In August, their combined market capitalization hit an all-time high of nearly $170 billion, reflecting the increased adoption of these cryptocurrencies and recognition of their benefits. At the time of writing, the market capitalization was over $172 billion, according to data from CoinMarketCap.
Cryptocurrency developers are increasingly integrating stablecoins into existing payment systems, facilitating more use cases for digital assets in traditional finance.
Stablecoins are currently being used to streamline remittance payments and cross-border transactions. This growth has attracted more users to the ecosystem, increasing the supply of stablecoins and leading to the emergence of new players like Ripple. This growth also shows that institutional investors are gaining interest and more money is flowing into cryptocurrencies.
USDT and USDC continue to dominate
Amidst the continuous development of stablecoins, assets like USDT and USDC continue to hold a dominant position. USDT currently accounts for nearly 70% of the stablecoin market capitalization, increasing from $92 billion at the beginning of the year to $119 billion at the time of writing.
Meanwhile, USDC has also grown significantly since the beginning of the year, increasing from $24 billion in early January to $34.75 billion as of October 18, an increase of more than 41%.
Jeremy Allaire, CEO of Circle, the USDC issuer, said four months ago that stablecoins have the potential to revolutionize finance, commerce and governance, so much so that stablecoins could become at least 10% of global economic money within the next decade. He said it could account for %. . According to Allaire, the cryptocurrency industry is still in its infancy, and stablecoins could be the wheels driving significant development and rapid adoption.
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