Global Stablecoin Supply Hits New All-Time High

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As a seasoned crypto investor with a decade under my belt, witnessing the meteoric rise of stablecoins has been nothing short of fascinating. I remember vividly the aftermath of TerraUSD’s collapse, a stark reminder of the volatile nature of this space. Yet, here we are, standing atop a new peak, with Tether and USD Coin leading the charge in the stablecoin sector.

The quantity of worldwide stablecoins has reached record levels, primarily driven by Tether (USDT) and USD Coin (USDC), which hold significant influence in this market.

Based on information from DefiLlama as reported by Bloomberg, the total value of stablecoins has grown by roughly 46% so far this year, peaking at approximately $191.6 billion when last recorded.

Stablecoin Market Value Up 50% Since January

As per data from DefiLlama in the past year, the total worth of stablecoins has been on an upward trajectory, with a significant rise of over 50% observed between the start of 2024 and now.

In simple terms, the popular stablecoin provider Tether has observed a circulation of around $133 billion for its USDT token, which represents roughly 69% of the worldwide market share for similar types of assets.

In the market, USDC, one of the major competitors, experienced a surge in its value to approximately $39.5 billion at the end of the fiscal year 2023. Starting with a circulation of $24 billion, this growth represents an increase in market share. The Circle-backed stablecoin presently controls around 21% of the global market.

2022 saw TerraUSD’s collapse triggering a market downturn, resulting in a decrease of approximately $19 billion in the total worth of stablecoins. Fast-forward almost two and a half years, and the sector has remarkably risen, reaching nearly $170 billion in August.

The optimistic viewpoint towards cryptocurrencies expressed by President-elect Donald Trump has ignited a wave in the digital assets market, propelling various cryptocurrencies to unprecedented record highs. For instance, Bitcoin soared beyond $99,000. Furthermore, statistics from Coingecko indicate that since Trump’s victory, the total worth of the crypto market has skyrocketed by an impressive $0.88 trillion.

Expectations on Crypto Adoption Grow

Meanwhile, there’s an increasing sense of anticipation that stablecoins could soon play a significant role in international trade, particularly in cross-border transactions.

Leading the way in this matter is Tether, who recently declared they had completed their inaugural crude oil trade from the Middle East for the first time. In October, it was said that their investment arm facilitated a physical crude oil deal between a prominent oil company listed on the stock market and a top commodity broker.

As an analyst, I’ve noticed a growing interest in the use of stablecoins within the United Kingdom. In fact, our policy-makers have expressed their intention to establish a comprehensive regulatory framework for cryptocurrencies by the year 2025, a revelation made by Economic Secretary Tulip Siddiq.

As a researcher, I am optimistic about potential changes in the regulatory landscape for cryptocurrencies in the UK. Previously, under the Conservative administration, crypto usage fell under the country’s payment laws. Now, according to reports, the incoming Labour government is set to enact a regulatory plan initially proposed by their predecessor, focusing on stabilizing the use of stablecoins.

Policy-makers are attempting to loosen the rigid regulations that the Financial Conduct Authority (FCA) enforces when it comes to registering cryptocurrency businesses.

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2024-11-28 18:28