In the past month, data reveals a significant increase in the combined market capitalization of leading stablecoins, rising from $131.71 billion to $136.56 billion. The top two stablecoins, tether and usd coin, experienced notable expansions in their supplies, with increases of 4.8% and 7.2% respectively.
Stablecoin Economy on the Rise
Over the last 30 days, the stablecoin market experienced a growth of approximately $4.85 billion, based on data spanning from Dec. 30, 2023, to Jan. 30, 2024. The top stablecoin by market capitalization, tether (USDT), witnessed a 4.8% increase in its supply, reaching $95.91 billion. Tether is now just 4.09 billion short of achieving a milestone of 100 billion tokens in circulation.
Circle’s usd coin (USDC) not only experienced a rise in supply, but its growth, at 7.2%, surpassed that of USDT in the past month. As the second-largest stablecoin by market cap, USDC now boasts a net worth of $26.50 billion, a climb from $24.71 billion just 30 days earlier. Following several months of redemptions, USDC has now observed two successive months of growth in token supply.
Over the last month, Maker’s stablecoin DAI experienced a slight decline, falling by 0.8%. Positioned as the third-largest stablecoin in terms of market valuation, the decentralized finance (defi) stablecoin, DAI, holds a market capitalization of $5.19 billion. Occupying the fourth spot among stablecoins, first digital usd (FDUSD) witnessed the most significant surge in supply, escalating by 42.8%. Currently, FDUSD’s market capitalization stands at $2.57 billion.
In fifth place is trueusd (TUSD), holding a market capitalization of approximately $1.47 billion. This past month, TUSD experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. TUSD also had some stability issues with its intended dollar-peg this month dropping to the $0.97 range on Jan. 17 and Jan. 26, 2024.
Tron’s USDD experienced a modest increase of 1.1%, while the frax dollar (FRAX) recorded a slight decrease of 0.1%. In the past month, Paxos’ USDP witnessed a decline of 4.3%, whereas Paypal’s PYUSD achieved a notable rise of 13.6%. Meanwhile, the tenth-ranked stablecoin, alchemix usd (ALUSD), saw a decrease of 0.9%.
As we wrap up this month’s episode in the stablecoin saga, a vibrant clash of forces akin to those seen in 2023 has influenced most stablecoins beneath the top trio. USDT, USDC, and DAI have held their ground, while emerging players like FDUSD and PYUSD are ascending in the hierarchy. Meanwhile, former frontrunners such as BUSD and GUSD have dropped out of the top ten. This path, characterized by fluctuations and milestones, echoes the wider story of the evolving crypto economy.
Source: Bitcoin
