Stablecoin market value reached a new all-time high in 11 months of growth
Stablecoin market capitalization reached a new high of $168 million in 11 months of continuous growth.
According to data from Defilama, the overall stablecoin market cap is now at an all-time high, beating the March 2022 peak.
Crypto analysts say that the surge in the market could be the result of new money entering the market. Source: Defillama
The data excludes algorithmic stablecoins, whose value is maintained by algorithmic mechanisms rather than tied to external assets such as fiat or gold.
The market reached an all-time high of $167 billion in March 2022, but soon fell, falling to $135 billion before the end of that year.
Patrick Scott, a crypto analyst also known as “Dynamo DeFi” In an August 26 post on X, he said this is “a sign that new money is coming into crypto.”
“And just like that, we're at a new all-time high. The total stat coin market cap, excluding algorithmic constants, is now at its highest level since early 2022.
Source: Patrick Scott
While they didn't speculate on what caused the uproar, another user noted that “retail has been at least eight months old,” asking if there was institutional investment behind the rally.
Leading the stablecoins pack is Tether (USDT). Shortly after the new year, USDT had a market cap of $91.69 billion.
In 2024, it posted consecutive monthly gains, reaching more than $117 billion in market capitalization for the first time in August.
Circle USD (USDC) had a one-year gain, reaching a market cap of more than $34 billion, the highest point for 2024, but a long way from the all-time high of $55.8 million in June 2022.
Stablecoin trading volume fell 8.35% to $795 billion last month due to lower trading activity on the central exchange, according to a report released by CCData in July.
The report points to the MiCA regulations, which have raised concerns about the future of USDT in Europe, as contributing factors to the decrease in stablecoin trading activity on centralized exchanges throughout July.
The trend continued until August, the market's trading volume currently sits at over $46 billion, according to CoinMarketCap.
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