Statistics reveal that since the onset of February 2024, the stablecoin sector has experienced a significant expansion, with an increase of $1.7 billion in its economy. In the last 30 days, both usd coin and first digital usd witnessed their supplies jump by 9.6% and 40.3%, respectively.
The Dual-Edged Sword of Stablecoin Growth
As the overall value of the cryptocurrency market has grown, so too has the stablecoin niche, with a $1.7 billion boost observed since Jan. 30, 2024. Initially pegged at $136.56 billion, the stablecoin market’s worth has climbed to $138.26 billion.
Currently, tether (USDT), the frontrunner in the stablecoin arena by market cap, boasts a valuation of $96.52 billion. In the recent 30-day span, USDT’s supply has increased by 1.7%. USDC, ranking second in terms of stablecoin market capitalization, has seen its supply escalate by 9.6% over the past month.
As of Wednesday, Feb. 14, USDC’s market value stands at approximately $27.9 billion. Meanwhile, DAI experienced a 7.2% decrease in supply during the same period, dropping to a market cap of $4.84 billion.
This month, first digital usd (FDUSD) experienced a significant rise of 40.3%. As of Wednesday, FDUSD’s market capitalization reached $2.83 billion. Conversely, trueusd (TUSD) encountered a 37.5% drop in supply, reducing its market cap to $1.27 billion today.
Tron’s USDD enjoyed a modest 2.9% increase, whereas frax dollar (FRAX) experienced a slight decrease of 0.2%. Additionally, Paypal‘s PYUSD witnessed a 2.8% growth in the same period. Lastly, the Paxos’ issued stablecoin pax dollar (USDP) saw a 31.1% decline.
The expansion of the stablecoin market brings a mix of advantages and challenges to the broader cryptocurrency landscape. On the upside, an enlarged stablecoin sector injects much-needed liquidity into the crypto marketplace, enhancing its overall fluidity.
Yet, the drawbacks of a burgeoning stablecoin market include heightened regulatory oversight, increased systemic vulnerabilities stemming from stablecoins that are collateralized within the crypto ecosystem, worries over centralization, and a dependence on conventional financial frameworks.
Source: Bitcoin
