The stablecoin sector continues to grow stronger, with total market value hitting $173 billion in October 2024, according to CCData’s latest research report. This marks the thirteenth straight month of growth for these digital assets that maintain a steady value by being tied to traditional currencies like the US dollar.
Tether (USDT), the market leader, reached a significant milestone in October, celebrating its tenth anniversary. The stablecoin has grown from a small project to controlling nearly 70% of the market, with a record-breaking $120 billion in circulation.
More than 330 million digital wallets have now received USDT, showing its widespread adoption.
Major Shifts in the Stablecoin Landscape
A notable development is the rapid rise of Sky Dollar (USDS), created by MakerDAO. The new stablecoin reached $1 billion in value just 13 days after launch, making it the second-fastest stablecoin to hit this milestone.
This quick growth came partly from users converting over $500 million worth of DAI, another MakerDAO stablecoin, into USDS.
The report also highlights changes among other major players. USD Coin (USDC) saw its first decline since June, dropping 4.43% to $34.4 billion. Meanwhile, newer entrants like PayPal USD (PYUSD) and First Digital USD (FDUSD) experienced decreases of 9.41% and 7.83%, reaching $630 million and $2.30 billion, respectively.
Trading and Global Adoption
Trading activity remains strong, with stablecoins recording $899 billion in trading volume by October 27. USDT dominates this space too, handling about 79% of all stablecoin trades on cryptocurrency exchanges. FDUSD has emerged as the second most traded stablecoin with nearly 11% market share, followed closely by USDC at 10%.
The euro-pegged stablecoin sector is also showing growth, with Circle’s EURC reaching new highs. Its value increased by 47.9% to $95.7 million, while trading volume hit a record $83.7 million. This growth comes as European regulators implement new rules for digital assets under MiCA regulation.
BlackRock’s entry into the stablecoin market continues to gain traction, with their BUIDL token reaching $530 million in value. This institutional-focused crypto asset, which requires a minimum $5 million investment, is now being considered as collateral for derivatives trading on major exchanges like Binance and OKX.
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