The cryptocurrency landscape is experiencing a remarkable upswing following the election of a crypto-friendly government under President Trump. This shift has been accompanied by soaring cryptocurrency prices and an escalating demand for stablecoins. Since the election, the total value of the digital-assets market has skyrocketed by nearly a trillion dollars, marking a significant milestone in the crypto world. Notably, Bitcoin and Solana (SOL) have reached unprecedented heights, while stablecoins have also joined this record-breaking trajectory with a notable increase in their market capitalization.
Stablecoins Reach New Milestones
In a notable achievement, the combined market size of stablecoins has surged to a record $190 billion this month, according to a report from CCData. This surpasses the previous all-time high of $188 billion recorded in April 2022, just before the collapse of the Terra-Luna stablecoin. The burgeoning growth in the stablecoin sector is indicative of the increasing reliance on these digital assets as a stable and secure form of cryptocurrency investment.
Tether Dominates the Stablecoin Market
Tether’s USDT continues to lead the stablecoin sector, with its market cap experiencing a 10% increase over the past month, reaching a new peak of $132 billion. Circle’s USDC has also shown significant growth, rising by 12% to nearly $39 billion in market cap. This marks the highest point for USDC since the March 2023 regional banking crisis, which had a substantial impact on the token. Currently, USDT holds a dominant 69.9% market share, while USDC is the second-largest stablecoin with a 20.5% share.
According to a report from Bloomberg, Tether is actively working to expand the usage of USDT by venturing into new industries, including commodities. Recently, Tether announced its involvement in funding its first crude oil transaction in the Middle East, highlighting its ambition to broaden the application of stablecoins beyond traditional markets.
38 of 200 Tokens Achieve All-Time Highs
Astonishingly, 38 out of nearly 200 tokens tracked have reached new all-time high supply levels over the past month. The report highlights that Ethena’s USDe experienced a 42% increase, setting a new record at $3.8 billion in November. This token offers yield to investors by holding spot BTC and ETH while simultaneously shorting an equal amount of perpetual futures, profiting from the funding rate.
The broad-market crypto rally has also fueled a significant increase in trading volumes with stablecoin pairs on centralized exchanges. These volumes have surged by 77% month-over-month, reaching $1.8 trillion. USDT was responsible for about 83% of these volumes, followed by Hong Kong-based First Digital’s FDUSD with a 9% share, and USDC accounting for 8%.
Tether Discontinues Support for EUR₮
In a recent development, Tether has announced its decision to discontinue support for its euro stablecoin, EUR₮. Since 2022, Tether has ceased processing new minting requests for EUR₮, citing the increasingly complex regulatory environment surrounding stablecoins in Europe. In response, Tether is pivoting its focus towards supporting new projects, including the introduction of new stablecoins, EURQ and USDQ. These new offerings are being developed in collaboration with Quantoz Payments and are fully compliant with MiCAR regulations.
The dynamic shifts in the cryptocurrency market, particularly in the stablecoin segment, underscore the evolving landscape of digital finance. As stablecoins continue to gain traction and diversify into various industries, their role in the broader financial ecosystem is becoming increasingly significant.
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