Stablecoin

Patrick

DeFi

Billion

<p>With a market cap of $2.24 Trillion, the crypto market hosts millions of cryptocurrencies with values varying from less than 1 to as high as hundreds of dollars. Moreover, there is a vast variety based on their characteristics, use cases, stability, and much more. One such category is stablecoins, where cryptocurrency values are pegged to some real asset like the US dollar, Gold, or something else.&nbsp; Now, this category has achieved a new milestone, creating a new ATH of more than $168 Billion in market capitalization after months-long constant growth.</p>
<h2 id="stablecoin-market-cap-surged-to-new-ath">Stablecoin Market Cap Surged To New ATH</h2>
<p>As per the <a rel="noopener noreferrer nofollow" href="https://defillama.com/stablecoins?backing=FIATSTABLES&amp;backing=CRYPTOSTABLES" target="_blank">DeDiLlama</a>, the stablecoin market cap has surged to a new all-time high record, currently at $168.125 billion. With this, it has officially beaten its March 2022 record after 11 months of the continuous surge.</p>
<p><img decoding="async" src="https://coingape.com/wp-content/uploads/2024/08/image-2024-08-26T152953.605.png" alt="Stablecoin Market Cap Data" width="696" height="379"></p>
<p>At that time, the market cap surged to a high of $167 Billion before losing more than $32 billion by the year-end. However, things went more downhill, it reached the bottom in August 2023, where the value dropped below the $121 billion mark before following an uptrend.</p>
<p>Since then, the stablecoin&nbsp;market cap has continuously surged, creating an all-time high of $168.349 billion on August 25, 2024. Many analysts, including Patrick Scott, believed it was good news for the market as it was a sign of new money entering the crypto.</p>
<blockquote>
 <p dir="ltr" lang="en">And just like that, we’re at a new all-time high.</p>
 <p>Total stablecoin market cap, excluding algorithmic stables, is now at the highest point ever, surpassing its previous high from early 2022.</p>
 <p>New money is entering crypto. <a rel="noopener noreferrer nofollow" href="https://t.co/xi25HLWlPr">pic.twitter.com/xi25HLWlPr</a></p>
 <p>— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) <a rel="noopener noreferrer nofollow" href="https://twitter.com/Dynamo_Patrick/status/1827747972353843663?ref_src=twsrc%5Etfw">August 25, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Another one has called it a good opportunity for the <a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin price</a> to rise due to increased liquidity in the market. Bitcoin is currently trading at $63.7K and has dropped from yesterday’s high point of $64.879, which does not indicate the immediate push from dolla-pegged tokens’ new surge.</p>
<h3 id="usdt-leads-the-stablecoin-market">USDT Leads The Stablecoin Market</h3>
<p>Tether (USDT) is the biggest stablecoin in the market, with $117.9 Billion in market cap and $39.2 Billion in trading volume. As it is a stablecoin, its value is pegged to the dollar and maintains close to that. As of now, the <a href="https://coingape.com/price/tether/" rel="noopener noreferrer nofollow">USDT Price</a> is $1 after a 0.01% surge in the last 24 hours.</p>
<p>Tether has conquered the industry with more than 70% of its dominance in the stablecoins market and has also played a role in this category’s growth. Moreover, in the last year, USDT’s market cap has grown from $82 Billion to $117 Billion, which is a 2X outcome. This surge comes with the <a href="https://coingape.com/usdt-issuer-tether-mints-3b-usdt-in-one-week-crypto-rally-ahead/" target="_blank" rel="noopener noreferrer nofollow">Tether minted 3 billion USDT</a> recently for circulation.</p>
<p>USDC, which is the second biggest dollar-pegged token, is also almost on the same level in terms of growth. A year earlier, USDC’s market cap was around $26 Billion, but today, it sits at around $37.4 Billion, making a significant contribution to the overall Stabelcoin market cap&nbsp;growth.</p>
<h2 id="final-thoughts">Final Thoughts</h2>
<p>The significance of the Tether and other dollar-pegged tokens has grown significantly with time, which is also clearly visible in the Stablecoin market cap growth. The category has created a new ATH of $168.349 Billion after Tether minted 3 Billion USDT tokens in the last few days. The impact was visible on the overall capitalization due to the 70% dominance of this dollar-pegged token in the category.</p>
<p>The post <a href="https://coingape.com/trending/stablecoin-market-cap-rises-to-ath-of-168-billion-why-its-good-news/" rel="noopener noreferrer nofollow">Stablecoin Market Cap Rises To ATH of $168 Billion: Why It’s Good News?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Stablecoin Market Cap Rises To ATH of $168 Billion: Why It’s Good News?

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