Stablecoin

Ethena USDe

PayPal USD

USDC

First Digital USD

As 2024 continues to unfold, and new unprecedented developments in the cryptocurrency space such as the launch of spot Bitcoin and Ethereum ETFs, another trend is emerging. The growth of stablecoins that has lasted for ten consecutive months and stablecoins’ market dominance rise to 6.93%.
<a href="https://cointelegraph.com/learn/stablecoins-101-what-are-crypto-stablecoins-and-how-do-they-work" rel="noopener noreferrer nofollow">Stablecoins</a> are a class of cryptocurrencies whose value is fixed to a reserve asset, like a fiat currency or commodity. They stand apart from the frequent price volatility associated with cryptocurrencies such as Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) or Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) due to their stability
According to a <a href="https://ccdata.io/view-report/j4k8z6m1p2?utm_medium=email&amp;_hsenc=p2ANqtz-_9KNBvyDqK2aNpbEuvo3a6KyuWyUQsjIN1iQEhEGO3IBsaMmrV7VipebgHBj8qjXEFW5t5J7GLlmjhZCG-6ZGNG8IqT81FOp6op6Ww4xWS76wZUa8&amp;_hsmi=92198021&amp;utm_content=92198021&amp;utm_source=hs_automation" target="_blank" rel="noopener noreferrer nofollow">report</a> from CCData, the total stablecoin market capitalization rose by 2.11% in July to $164 billion amid a ten-month ascent that was witnessed by major stablecoins.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/5d9bd2f7-0a12-416c-81bf-7cc873030960.png" alt="Stablecoin growth soars as crypto global mass adoption ramps up">
 <figcaption style="text-align: center;">Total stablecoin market cap and trading volume. Source: CCData
 </figcaption>
</figure>
The largest stablecoin by market cap, Tether (<a href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow">USDT</a>) kept growing, rising 1.61% to $116 billion,” a new all-time high for the stablecoin with its eleventh consecutive monthly increase in market capitalization,” the report noted. USDT’s market dominance is currently at 69.6%.
While other major stablecoins such as USD Coin (<a href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow">USDC</a>), BlackRock’s BUIDL and PayPal USD (PYUSD) saw increases, First Digital USD (FDUSD) and Ethena USDe saw their market capitalization fall.
<blockquote>
 “PayPal USD continued to be the largest gainer among the top ten stablecoins, rising 17.9% to $589mn, a new all-time high for the stablecoin.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/ec476ace-9d21-4cbe-a5fe-cb11a0ce97d7.png" alt="Stablecoin growth soars as crypto global mass adoption ramps up">
 <figcaption style="text-align: center;">Month-on-month performance of top 10 stablecoins. Source: CCData
 </figcaption>
</figure>
<a href="https://cointelegraph.com/news/could-stablecoin-volumes-overtake-visa-this-quarter#:~:text=Current%20stablecoin%20market%20capitalization%20is,%2437%20billion%2C%20according%20to%20CoinGecko." rel="noopener noreferrer nofollow">Stablecoin trading volumes</a> fell 8.35% to $795 billion in July, amid struggling activity on centralized exchanges, with overall trading volumes on “trend to record higher monthly volumes, following the <a href="https://cointelegraph.com/news/ethereum-etf-launch-drives-2-2b-inflows" rel="noopener noreferrer nofollow">launch of spot Ethereum ETFs</a> and the <a href="https://cointelegraph.com/news/trump-vp-pick-jd-vance-could-mean-new-era-for-crypto" rel="noopener noreferrer nofollow">bullish sentiment</a> on the industry expressed at the Bitcoin 2024 Conference last week,” per the CCData report.
CCData’s report points to recent <a href="https://cointelegraph.com/news/mica-laws-crypto-europe-impact" rel="noopener noreferrer nofollow">MiCA regulations</a>, which have raised concerns about the future of USDT in Europe, as a factor contributing to the decrease in stablecoin trading activity on centralized exchanges.
<blockquote>
 “The regulations require stablecoin issuers to secure e-money licenses and maintain significant reserves, enhancing market security. Major stablecoins like Circle's USDC and EURC have already complied.”
</blockquote>
As such, USD Coin continues to dominate trading activity on centralized exchanges, with a marked increase in trading activity for USDC pairs.
Related: <a href="https://cointelegraph.com/news/tether-reports-record-breaking-profit-q2" rel="noopener noreferrer nofollow">Tether reports record-breaking $5.2B profit in first half of 2024</a>
<h2 id="the-rise-of-usdc">The rise of USDC</h2>
One of the most significant findings of the CCData report is the surge in the market cap and trading volumes of USD Coin, the second largest stablecoin by market capitalization.
The report notes that USDC now accounts for 73.5% of the market share among the top 10 stablecoins by market capitalization.
<blockquote>
 “The trading volumes on USDC pairs on centralised exchanges rose 48.1% to $135bn, benefitting from the stablecoin’s MiCA compliance after the European regulations took effect late last month.”
</blockquote>
Bankless, a crypto firm, <a href="https://x.com/BanklessHQ/status/1818402179134148954" target="_blank" rel="noopener noreferrer nofollow">provided</a> a deep-dive analysis of the Solana ecosystem in a July 31 post on X, explaining the reasons behind USDC’s latest growth.
<blockquote>
 “Circle's USDC dominates the stablecoin arena on Solana, accounting for ~70% of the chain's total stablecoin supply,” Bankless declared adding that USDC's volume on Solana has been 19:1 compared to USDT this week “surpassing the top 20 ERC tokens combined.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/8476e58d-cd34-4a91-96d0-a31a50cc05b7.jpeg" alt="Stablecoin growth soars as crypto global mass adoption ramps up">
 <figcaption style="text-align: center;">Stablecoin supply on Solana. Source: <a href="https://x.com/BanklessHQ/status/1818402179134148954" target="_blank" rel="noopener noreferrer nofollow">Bankless</a>
 </figcaption>
</figure>
Bankless attributed USDC's dominance on <a href="https://cointelegraph.com/news/what-is-solana-and-how-does-it-work" rel="noopener noreferrer nofollow">Solana</a> to Circle and the Solana Foundation’s strategies to incentivize developers and promote trading platform integration.
The analysis refers to developer grants from platforms like <a href="https://cointelegraph.com/news/what-is-solend-and-how-does-it-work#:~:text=Solend%20is%20an%20autonomous%20lending,or%20short%20on%20the%20platform." rel="noopener noreferrer nofollow">Solend Protocol</a> and Superteam provided in USDC, which have attracted more developers to the layer-1 blockchain. Others include <a href="https://cointelegraph.com/news/circle-launches-cross-chain-usdc-transfer-protocol-for-ethereum-avalanche" rel="noopener noreferrer nofollow">Circle's Cross Chain Transfer Protocol</a> (CCTP) launch on Solana and Circle’s Web3 Services, all of which aim to unify DeFi and “establish USDC as Solana's leading stablecoin.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Stablecoin growth soars as crypto global mass adoption ramps up

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