Stablecoin market cap rises to 2-year high as dominance slips to 6%: CCData

Stablecoin Market Cap Rises To 2-Year High As Dominance Slips To 6%: Ccdata


According to a new report from CCData, the market capitalization of stablecoins has reached a record high following eight consecutive months of growth since April 2022.

The cryptocurrency analysis platform reported on May 29 that the stablecoin market cap increased by 0.63% from the beginning of the month, reaching $161 billion. However, the stable coin's market dominance decreased slightly to 6.07%, down from 7% in March.

“This decline highlights a recovery in the value of major crypto assets, reflecting improved market sentiment following the unexpected adoption of spot Ethereum ETFs in the US.”

Stablecoin and CBDC monthly performance. Source: CCData

Among the top ten stable coins, the market cap of Athena USDe rose for the fifth consecutive month, rising 11.6% to $2.61 billion. CCData described this increase as a bond for sustainable trading on Bybit.

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Source: Bibit

Tether (USDT), the largest stablecoin by market value, hit a peak market cap of $111 billion on May 29.

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BlackRock's tokenized fund token BUIDL rose 19.6% to $448 million, making it the largest tokenized treasury fund, surpassing Franklin Templeton's Benji. BUIDL represents a stake in BlackRock's USD Institutional Digital Liquidity Fund and is convertible to USDC on a 1:1 basis.

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Market price performance of Stablecoins since March. Source: CCData

The report shows that for the sixth consecutive month, Circle's USDC (USDC) market capitalization increased to $32.6 billion in May.

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USDC market value and transaction volume. Source: CCData

This increase coincides with increased demand, with the USDC pair recording its highest monthly trading volume in March. USDC's market share in trading volume rose to 8.27% in the second month.

The report noted that the USDC benefited from chain business activity on networks such as Baz and Solana.

Despite the increase in market value, stablecoin trading volume fell to $829 billion on a monthly basis on May 23.

“Trading activity on centralized exchanges has historically declined in the two months following the Bitcoin halving event,” the report said.

Overall, CCData's report concludes that Storcoin's total market capitalization has recovered from losses following the collapse of the TerraLuna ecosystem and the collapse of 100% algorithmically stable coin TerraClassicUSD (USTC), which started a seventeen-month decline. .

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.

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